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.

The 5 Essential Estate Planning Documents Every Vermonter Should Have

June 20, 2025
Estate planning may sound like something only the wealthy or elderly need to worry about, but in truth, it’s an essential part of life planning for every adult—regardless of age, wealth, or family structure. Whether you're a small business owner in Montpelier, a retiree in Middlebury, or a young parent in Burlington, having a clear and legally sound estate plan can protect your loved ones, preserve your assets, and provide peace of mind. In Vermont, as in most states, there are five core documents that form the foundation of a comprehensive estate plan. Each plays a specific role in ensuring your wishes are respected and your affairs are handled according to your preferences—both during your lifetime and after your death. Here’s a closer look at the five essential estate planning documents every Vermonter should have: 1. Last Will and Testament A will is the cornerstone of any estate plan. It outlines how you want your assets to be distributed after your death and names an executor to manage your estate. If you have minor children, your will is also the document where you nominate a guardian for them. Without a will, your estate will be distributed according to Vermont’s intestacy laws—which may not reflect your wishes. This process can be time-consuming, emotionally draining for your family, and lead to unintended outcomes. Even if your estate is modest, a will ensures clarity and can help your loved ones avoid unnecessary legal complications during an already difficult time. 2. Durable Power of Attorney A durable power of attorney (POA) allows you to name someone to handle your financial and legal affairs if you become incapacitated. This could include paying your bills, managing investments, filing taxes, or making other important decisions on your behalf. In Vermont, a POA remains in effect even if you become mentally or physically unable to manage your own affairs—hence the term durable. Without a POA, your loved ones may have to go through a costly and time-consuming court process to gain the authority to act on your behalf. Choosing a trusted agent now can spare your family considerable stress later. 3. Advance Directive for Health Care Also known as a health care proxy or medical power of attorney, an advance directive allows you to appoint someone to make medical decisions for you if you are unable to do so yourself. This includes decisions about life-sustaining treatments, organ donation, and end-of-life care. Vermont has a specific form for advance directives, and completing one ensures your health care wishes are known and legally binding. Without this document, important medical decisions may fall to someone who doesn’t know your preferences—or disagreements among family members could create unnecessary tension. 4. HIPAA Authorization The Health Insurance Portability and Accountability Act (HIPAA) protects the privacy of your medical records, but it can also make it difficult for loved ones to access information in an emergency. A HIPAA authorization allows you to name individuals who can access your medical records and communicate with your doctors. This is especially important if you have multiple family members who may need to coordinate your care or advocate on your behalf. Without this document, your loved ones may be left in the dark at a time when fast, informed decisions are critical. 5. Revocable Living Trust (Optional, But Strongly Recommended) While not every Vermonter needs a revocable living trust, it can be a powerful tool—especially if you own real estate, have a blended family, or want to avoid probate. A revocable living trust allows you to transfer ownership of your assets into a trust during your lifetime, with instructions for how they should be managed and distributed. You retain control of the assets while you're alive, and after your death, they can be distributed without going through the Vermont probate process. A trust also provides greater privacy, flexibility, and control, and can be particularly helpful for managing out-of-state property or planning for incapacity. Take Control of Your Legacy Estate planning isn’t just about preparing for the unexpected—it’s about making intentional decisions that protect your family, safeguard your assets, and reflect your values. At Deppman Law PLC, we help individuals and families throughout Vermont create customized estate plans that meet their specific needs—no matter how simple or complex. Whether you’re starting from scratch or need to update existing documents, we’re here to guide you through every step with care and clarity. Contact Benj or Lesley today to schedule a consultation and begin building your estate plan with confidence.

Can My Child Choose Which Parent to Live With in Vermont?

May 18, 2025
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