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.

Planning for Your Digital Assets as Part of Your Vermont Estate Plan

September 15, 2026
When you think about estate planning, you may picture your home, retirement savings, or possessions you hope to leave to family members. But much of everyday life now exists online. Important financial records may arrive only by email, while decades of family photographs may be stored in a cloud account. Without planning, the people handling your affairs may struggle to locate those records or obtain the authority needed to manage them. Addressing digital assets can help make your estate plan more complete. Start With an Inventory Digital assets can include electronic files and online accounts with financial or sentimental value. Your inventory might identify email accounts, cloud storage, social media profiles, cryptocurrency holdings, and websites or domain names you own. Also identify financial institutions you access online. Although the money in a bank account is distinct from the online account used to manage it, knowing where that account exists can be essential. For a small business owner, the inventory should also address business systems and records. Consider what someone would need to keep operations running if you became unavailable unexpectedly. Decide What You Want Preserved Different accounts may call for different instructions. You might want family photographs saved and shared with your children, while preferring that certain personal accounts be closed. Think about who should receive important files and whether any material should remain private. Avoid assuming that the person handling your estate will know which documents matter or where they are stored. Backing up irreplaceable photographs and other meaningful files can also reduce dependence on a single account or service. Address Legal Authority Knowing a password does not necessarily give someone legal authority to use an account. Vermont’s Revised Uniform Fiduciary Access to Digital Assets Act provides a framework for access by executors and other fiduciaries, but access depends on the circumstances and applicable requirements. Your estate planning documents should address digital assets and your wishes concerning disclosure. The contents of private electronic communications deserve particular attention because access can involve additional consent requirements. An attorney can help coordinate these provisions with the rest of your plan. Review Account Planning Tools Some providers offer online tools that allow users to direct what happens to account information after death. These settings should be reviewed alongside your legal documents. Under Vermont law, a direction made through a qualifying online tool can override conflicting instructions in a will, trust, or power of attorney. Completing estate planning documents without checking those settings may therefore leave inconsistent instructions in place. If no applicable online direction exists, your legal documents can play an important role in expressing whether disclosure should be allowed or prohibited. Keep Access Information Secure Your plan should explain where authorized individuals can find necessary access information without unnecessarily exposing it. Avoid putting passwords directly in your will, which may become part of a court record. A secure password manager or a separately maintained record may be useful, depending on your circumstances. Consider how account recovery works, particularly when verification depends on a phone or another email account. Cryptocurrency requires special care. Losing necessary keys or recovery information can make assets inaccessible, while sharing that information carelessly can expose them to theft. Keep the Plan Current An inventory becomes less useful as accounts change. Review it periodically and after significant changes to your online activities or business. Make sure the appropriate person knows that your instructions exist and where to find them. Contact Deppman Law PLC Planning for digital assets can help preserve meaningful records and give the people handling your affairs clearer guidance. To learn more about incorporating digital assets into your Vermont estate plan, reach out to Deppman Law PLC for more information.

What Happens to a Small Business in a Vermont Divorce?

August 14, 2026
For a small business owner, divorce can raise questions that extend well beyond the family home or joint bank accounts. A business may represent years of work and provide the income that supports both spouses. If they built or operated it together, separating their personal lives may also mean untangling their working relationship. Understanding how a business may be addressed in a Vermont divorce can help owners prepare for difficult decisions while protecting ongoing operations. Is the Business Part of the Property Division? Vermont courts have broad authority to divide property in a divorce. All property owned by either or both spouses may be considered, regardless of when it was acquired or whose name appears on the ownership documents. A business started before the marriage or inherited from a parent is therefore not automatically excluded. However, being subject to division does not mean that a business must be split equally. Vermont follows equitable distribution, which calls for a fair division based on the circumstances. Relevant considerations include the length of the marriage, each spouse’s financial situation, and their contributions to acquiring or preserving property. Nonfinancial contributions, including homemaking, also matter. Determining What the Business Is Worth Before spouses can meaningfully discuss how to address a business, they need a reliable understanding of its value. Annual revenue alone does not answer that question, and a business’s tax return may not tell the whole story. Depending on the company, a valuation may examine its assets and outstanding debts, along with its earnings history and future prospects. The business’s dependence on the owner’s personal involvement may also require careful analysis. A qualified valuation professional can help assess these issues. Even when spouses agree that one person should keep the business, disagreements about its value can make settlement difficult. Establishing a supported value provides a stronger starting point for negotiations. Can One Spouse Keep the Business? One possible resolution is for one spouse to retain the business while the other receives different assets or a negotiated payment. For example, the overall settlement might allocate a larger share of other property to the spouse who is giving up a claim to the business. That arrangement must be financially workable. A business may have substantial value without enough available cash to fund an immediate buyout. Payment terms should account for operating expenses and the company’s ability to continue generating income. Selling the business may be another option. Some former spouses consider continuing as co-owners, although that requires a realistic assessment of whether they can work together and a clear agreement governing future decisions. What If Both Spouses Work There? When both spouses are involved in daily operations, ownership is only part of the discussion. They may also need to address employment responsibilities and compensation while the divorce is pending. Consider practical questions early: Who will communicate with employees? Who can approve significant expenditures? How will financial information be shared? Temporary arrangements can help preserve stability while longer-term issues are resolved. Personal disagreements can otherwise spill into business decisions and affect relationships with customers or staff. Prepare Before Making Changes Gather financial records and any agreements affecting ownership or transfers. If other owners are involved, their rights and the company’s governing documents also need attention. Before changing compensation, transferring ownership, or making unusual withdrawals, speak with an attorney. Decisions made during a divorce can affect both the business and the property settlement. Contact Deppman Law PLC Addressing a business in divorce requires attention to the company’s future as well as each spouse’s financial needs. If you own a business and are considering divorce, or have questions about a jointly operated company, reach out to Deppman Law PLC for more information about your options.