Vermont Property Division | VT Settling Disputes for Marital and Non-Marital Divorce Assets and Debts

When a couple gets divorced, all assets and debt from the marriage must be sorted out by the courts. Legally speaking, the courts must turn the 1 household that existed during the marriage into the 2 separate households of each former spouse. Among the many tasks a court must take care of, a universal one is property division, specifically Vermont property division.

No divorcing couple should discount the guidance of a licensed attorney who works in these cases. Property division laws can be complex, vary from state to state and your divorce may be harder to settle than a friend or family member's was.

Property Division Divorce Laws in Vermont

The purpose of Vermont property division laws is to make sure that marital property is allocated to each spouse equitably but not necessarily in a 50-50 split. Vermont marital property is divided under the considerations of 15 V.S.A. §751 but the trial court judge receives great discretion when converting Vermont marital property into separate Vermont divorce property.

Vermont is an equitable distribution state. This means that with regard to Vermont divorce assets, anything the spouses acquired before marriage generally will not be included in Vermont divorce assets or Vermont divorce property.

However, separate & non-marital property may be included in property division if the trial judge feels this is necessary to make each spouse whole after the divorce. This is permitted under 15 V.S.A. §751(a).

What is considered Marital and Non-Marital Property?

Marital property is defined as all items acquired during the marriage by either spouse as well as separate items that were brought into a marriage and converted into marital property.
Non-marital property is generally defined as property that each spouse had before the marriage or acquired individually without including it into the marital property.

However, 15 V.S.A. §751(a) states that all property “however and whenever acquired, shall be subject to the jurisdiction of the court.” Title ownership is irrelevant unless “equitable distribution can be made without disturbing separate property.”

Dividing Assets and Debt

After the court decides which property is available for distribution, the next step is property valuation. The final step is the allocation of marital property.

Under 15 V.S.A. §751(b), the court considers a number of factors in dividing assets and debt. Some of these are:

The marriage's length
The parties' ages & health
The parties' earning capacity
Any maintenance awards to either party
The value of the parties' property interests and liabilities

Using statutory factors, judges decide how a marriage's assets should be divided. Here is a list of the most common property items and the most common allocation scheme used.

Cash: Divided equitably among the spouses.
- Example 1: A joint savings account has $5,000. The court would most likely award a portion of the money to each spouse.
- Example 2: A joint savings account has $5,000. One spouse contributed $4,000 and the other contributed $1,000. The amount may be divided 50-50 or may be more balanced if the $1,000 contributor has fewer assets than the $4,000 contributor.
Retirement Plans: Divided based on the duration of the marriage at the time the benefits accrued, looking at the present value of the plan and/or survivor benefits.
- Example 1: A spouse got benefits in a retirement plan after working for 25 years and was married for 20 of those years. The ex-spouse would be entitled to a portion of the retirement plan that was acquired during the marriage.
- Example 2: A spouse has an unvested retirement plan. No division takes place until the plan is payable to the spouse who has it. However, the portion of that plan earned during marriage may be part of the property division.
Vehicles: Divided based on the values at the date determined by the court. May be sold or given to a spouse outright.
- Example 1: A car is owned by a spouse The car may be sold with the proceeds divided between each spouse or given to a spouse outright.
- Example 2: A go-kart has a shared title. The go-kart may be sold with the proceeds divided among the spouses or the go-kart may be given to a poorer spouse.
Insurance: Determined based upon each spouse's health, availability of alternate insurance and premium payments from marital income.
- Example 1: One spouse has covered the other under employer provided health insurance. The other spouse is in poor health and could not afford alternate health care coverage. The court may order the first spouse to continue covering that spouse for a set time period and/or award money to the ailing spouse to get new coverage.
- Example 2: One spouse has a life insurance policy where the ex-spouse is to get survivor benefits. The spouse may be required to remain on the policy or may receive a portion of the benefits.

Settling Disputes in a Divorce Case with Property and Asset Division

Under Vermont case law, the division of real estate is a final division of property not subject to modification by the trial court. However, you may go back to the trial court to enforce a property division order if a spouse is being uncooperative.

The trial court's determinations will not be changed by a higher court unless the division was clearly an abuse of the trial court's discretion. This is very hard to prove.

Help From a Vermont Property Divorce Lawyer

Retaining a Vermont property divorce lawyer is key to getting the fairest and most equitable result in the property division phase of a divorce. The lawyer can provide professional guidance, keep you informed of likely outcomes and help you present the best arguments and presentation to the trial judge handling the divorce.

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