Vermont Property Division
How property is divided in a Vermont divorce. Understand equitable distribution rules, what counts as marital vs. separate property, and how to protect your assets. Updated for 2026.
Vermont is an equitable distribution state. Under 15 V.S.A. § 751, the court shall settle the rights of the parties to their property by distributing the property equitably. All property owned by either spouse, however and whenever acquired, is subject to just and equitable division. This includes both marital and separate property. The court starts with the premise that an equitable division is an equal division, but may deviate based on statutory factors.
What Equitable Distribution Means for You
In an equitable distribution state like Vermont, the court aims to divide property fairly based on each couple's unique circumstances. "Fair" does not necessarily mean "equal." The court considers multiple factors.
Marital Property (Subject to Division)
- • Income earned during marriage
- • Real estate purchased during marriage
- • Retirement contributions during marriage
- • Vehicles purchased during marriage
- • Business income/growth during marriage
- • Marital debts
Separate Property (Usually Not Divided)
- • Property owned before marriage
- • Gifts received by one spouse
- • Inheritances
- • Personal injury settlements
- • Property defined as separate in a prenup
Inventory your assets with Divorce.ai
Our asset tracker helps you catalog and value all marital property for a fair division.
Factors Vermont Courts Consider
When dividing property, Vermont courts consider the following factors:
Length of the civil marriage
Age and health of the parties
Occupation, source and amount of income of each party
Vocational skills and employability of each party
Contribution of each party to the education, training, and increased earning power of the other
The value of all property interests, liabilities, and needs of each party
Whether the property settlement is in lieu of or in addition to maintenance
Opportunity of each party for future acquisition of capital assets and income
The desirability of awarding the family home to the party having custody of children
The party through whom the property was acquired
The contribution of each party in the acquisition, preservation, and depreciation or appreciation of the property
The respective merits of the parties
Common Assets Divided in Vermont Divorce
Real Estate
The marital home is often the largest asset. Options include selling and splitting proceeds, one spouse buying out the other, or deferred sale (especially when minor children are involved).
Retirement Accounts
401(k)s, IRAs, and pensions earned during marriage are marital property. Division requires a QDRO (Qualified Domestic Relations Order) to avoid tax penalties. Cost: $500-$1,500.
Business Interests
If either spouse owns a business started or grown during the marriage, its value (or the marital portion of its value) is subject to division. A formal business valuation may be needed.
Vehicles
Cars, boats, and other vehicles purchased during marriage are divided based on current value minus any outstanding loan balance.
Bank Accounts & Investments
Joint and individual accounts funded during the marriage are typically marital property. This includes savings, checking, brokerage, and crypto accounts.
Know what you're entitled to
Divorce.ai's asset tracker and equitable distribution calculator help you understand how property might be divided in your Vermont divorce.
How to Protect Your Assets in Vermont Divorce
Document everything. Create a comprehensive inventory of all assets and debts with current values and documentation.
Keep separate property separate. Do not commingle inherited funds or pre-marital assets with joint accounts.
Monitor joint accounts. Watch for unusual withdrawals or transfers. Courts look unfavorably on dissipation of marital assets.
Get professional valuations. For high-value assets (real estate, businesses, art), professional appraisals ensure accurate division.
Consider tax implications. Some assets have hidden tax costs (e.g., capital gains on stocks). A $100,000 investment account is not the same as $100,000 in cash.