What Happens to the House in a Vermont Divorce?
March 21, 2025

For many couples, the family home is more than just their biggest financial asset—it’s also where memories were made, children were raised, and routines were built. So when a marriage ends, one of the most emotionally and financially significant questions becomes: What happens to the house?


In Vermont, there’s no one-size-fits-all answer. The outcome depends on a range of factors, including how the property was acquired, whose name is on the deed, and what’s considered “equitable” under state law.


Vermont Is an Equitable Distribution State


Unlike community property states, where marital assets are divided 50/50, Vermont follows equitable distribution rules. That means the court aims for a division of property that is fair, but not necessarily equal. When it comes to the house, the court will look at the full picture to determine who should receive it—or whether it should be sold.

 

Is the Home Marital Property?


The first step in deciding what happens to the house is to determine whether it’s considered marital property or separate property.


  • Marital property generally includes any property acquired by either spouse during the marriage, regardless of whose name is on the deed.
  • Separate property is usually property owned by one spouse before the marriage, inherited individually, or received as a gift—though even separate property can become marital under certain conditions.


For example, if one spouse bought the home before the marriage but both spouses contributed to the mortgage or improvements, the house (or at least part of its value) may be treated as marital property.

 

What Factors Does the Court Consider?


When deciding what to do with the house, Vermont courts look at a number of factors to determine what’s fair. These include:


  • The length of the marriage
  • Each spouse’s contributions (financial and non-financial)
  • The needs of any children
  • Each spouse’s earning potential and financial circumstances
  • Whether one spouse wants to keep the home and can afford to do so
  • Whether one spouse has primary custody of the children and would benefit from staying in the home

 

Common Outcomes for the House in Divorce


Depending on the circumstances, there are several ways the home can be handled:


1. One Spouse Buys Out the Other

If one spouse wants to keep the home, they may buy out the other spouse’s share. This typically involves refinancing the mortgage in their own name and paying the other spouse their portion of the home’s equity.


2. The Home Is Sold and the Proceeds Are Split

This is often the simplest option, particularly if neither spouse can afford to keep the house on their own or if neither wants it. The couple sells the house and divides the equity according to the divorce agreement or court order.


3. One Spouse Stays Temporarily

In some cases, especially where children are involved, one spouse may stay in the home for a set period of time (e.g., until the youngest child turns 18), after which the home is sold and the proceeds divided.


4. Both Spouses Continue to Co-Own

Rare, but possible—especially if the real estate market is poor or the home has sentimental value. This requires careful planning, clear agreements about expenses and responsibilities, and an exit plan.

 

Don’t Forget the Tax and Mortgage Implications


Whatever the outcome, it’s important to consider:


  • Mortgage liability—If both spouses are on the mortgage, both are responsible—even if one moves out.
  • Capital gains taxes—Selling a home may trigger taxes on the profit, though married couples can often exclude up to $500,000 in gains if certain conditions are met.
  • Refinancing challenges—The spouse keeping the home must qualify on their own for refinancing.


These financial and tax issues are why it’s important to work with both a divorce attorney and a financial advisor during this process.

 

Need Help Managing Property Division? Contact Deppman Law PLC


Dividing property—especially the family home—can be one of the most difficult aspects of divorce. At Deppman Law PLC, we’re here to help you understand your rights, evaluate your options, and reach a fair and sustainable resolution. Contact us today for a confidential consultation about your case.

Buying a Home With Someone You’re Not Married To

July 16, 2026
Buying a home with a partner, friend, or family member can make homeownership more attainable and allow two people to invest in property together. But when co-owners are not married, many of the legal protections and rules that apply to married couples do not necessarily apply in the same way. Before purchasing a home together, it’s important to think beyond the down payment and mortgage. Considerations such as how expenses will be divided and what happens if one person's circumstances change are much easier to address before closing than after a disagreement arises. Decide How You Will Own the Property One of the first decisions co-buyers will need to make is how title to the property will be held. The form of ownership can affect each person's rights in the property and what happens to an owner's interest if that person dies. The deed should also accurately reflect the ownership arrangement the buyers intend. A 50/50 split may make sense when both people are contributing equally, but that may not always be the case. One buyer might provide most of the down payment while the other contributes more toward the monthly mortgage or improvements to the property. Those differences should be discussed before the purchase. Simply contributing more money does not necessarily mean that a person will automatically receive a greater ownership interest or be entitled to reimbursement later. Buyers should understand how their contributions relate to their legal ownership and document their intentions accordingly. Plan for the Costs of Owning the Home The purchase price is only the beginning of the financial relationship between co-owners. Mortgage payments, property taxes, insurance, utilities, routine maintenance, and major repairs all create ongoing obligations. A written agreement can establish how those expenses will be divided and how decisions about the property will be made. It can also address less predictable situations. If the roof needs to be replaced, for example, are both owners responsible for half? What if one owner pays for a significant renovation that increases the property's value? What happens if one person temporarily cannot contribute toward the mortgage? Working through these questions in advance can prevent uncertainty about whether a payment was intended as a shared expense, a loan, or an additional investment in the property. Co-owners should also understand that ownership of the home and responsibility for the mortgage are separate issues. The names appearing on the deed determine ownership, while the loan documents determine who is legally responsible for repaying the mortgage. The way those documents are structured can have significant consequences for both parties. Consider What Happens If One Person Wants Out It may feel uncomfortable to discuss the end of a living arrangement while preparing to buy a home together, but it is one of the most important conversations unmarried co-buyers can have. Circumstances change. One person may want to relocate, experience a financial setback, enter a new relationship, or simply decide that joint ownership no longer works. Without an agreement, the owners may disagree about whether the property should be sold, whether one person can buy out the other, or how the home's value should be determined. A co-ownership agreement can establish a process before those issues arise. It might address how a buyout will work, how the property will be valued, how sale proceeds will be divided, and what happens if the owners cannot agree about whether to sell. The agreement can also address what should happen if an owner dies and how that person's interest in the property will be handled. Contact Deppman Law PLC  Buying a home together is a significant financial commitment, regardless of the relationship between the buyers. Taking the time to establish a clear ownership arrangement and put expectations in writing can help protect both parties and reduce the potential for disputes later. If you are considering purchasing Vermont real estate with a partner, friend, or family member, contact Deppman Law PLC for guidance on structuring the purchase and creating a co-ownership agreement that addresses your needs.

Buying a Small Business in Vermont and What to Know Before You Sign

June 17, 2026
Buying an existing business can be an appealing alternative to starting one from scratch. The customer base, employees, equipment, vendor relationships, and operating history may already be in place. But a business that looks successful from the outside can come with obligations and risks that are not immediately apparent. Before signing a purchase agreement, buyers should understand exactly what obligations may come with the transaction and whether the business is in the financial and legal position the seller has represented. Look Beyond the Financial Statements Financial records are an important part of evaluating a potential acquisition, but due diligence should extend well beyond revenue and profitability. A buyer should review the business's tax records, debts, pending or threatened litigation, insurance coverage, licenses and permits, and any liens or other claims involving business assets. Existing contracts also deserve careful attention. Agreements with customers, vendors, suppliers, lenders, and other third parties can have a significant impact on the value of the business. Some contracts may be transferred to a new owner, while others require consent or contain provisions allowing the other party to terminate the agreement after a change in ownership. If the business operates from leased property, the commercial lease can be equally important. Buyers should understand how much time remains on the lease, renewal options, rent increases, maintenance obligations, and whether the landlord must approve an assignment or a new lease. Vermont buyers should also be aware of state-specific obligations that can arise in connection with a business transfer. For example, Vermont law includes notice requirements involving certain bulk transfers of business assets and provisions that may affect a buyer that continues the operations of an existing employer. Know the Value of What You Are Buying Employees can be one of a business's most valuable assets, particularly when customer relationships or specialized knowledge depend on particular people. Before closing, buyers should understand the existing workforce, compensation and benefits, employment agreements, accrued obligations, and any ongoing employment disputes. In Vermont, acquiring and continuing an existing business can also have implications for unemployment insurance. Under certain circumstances, an acquiring business may be treated as a successor employer, and the predecessor's experience-rating record may transfer to the successor. Buyers should also identify precisely which physical and intangible assets are included in the purchase. Depending on the business, that might include equipment, inventory, vehicles, intellectual property, websites and domain names, customer information, trade names, or other valuable rights. It is important to determine not only that the seller possesses these assets, but also whether they are subject to liens or security interests that need to be addressed before closing. Asset Purchase or Equity Purchase? One of the most important decisions in structuring an acquisition is whether to purchase the assets of the business or the ownership interests in the company itself. In an asset purchase, the buyer generally purchases specifically identified assets and assumes only the liabilities identified in the agreement, subject to applicable law. This structure can give the parties greater ability to define what is — and is not — part of the transaction. In an equity purchase, the buyer purchases ownership of the existing company. The business entity continues to own its assets and remain subject to its contractual obligations and liabilities. That makes a careful investigation of the company's history particularly important. Neither structure is automatically better. Tax consequences, contracts, licenses, liabilities, financing, and the buyer's plans for the business can all influence how a transaction should be structured. Contact Deppman Law PLC Purchasing a business is a significant investment, and issues discovered after closing can be far more difficult and expensive to address than those identified during negotiations. An attorney can help evaluate the proposed transaction, conduct legal due diligence, identify potential risks, and prepare or review the agreements necessary to protect the buyer's interests. If you are considering buying a business in Vermont, contact Deppman Law PLC to learn more about the acquisition process and the steps you can take before signing.