Vermont Divorce With a House — Your Options (2026)

Your home is typically your largest marital asset. In Vermont, the Property Settlement Agreement controls how the home is addressed — and both spouses' Financial Affidavits are required.

Is the Property Marital or Separate?

Purchased during the marriage with marital funds: Marital property — equitable distribution (15 V.S.A. § 751).

Owned before the marriage: Generally separate — BUT marital mortgage payments create a marital equity component.

Inherited or gifted to one spouse: Generally separate — document carefully.

Option 1 — One Spouse Keeps the House

Property Settlement Agreement must include:

• Full address and legal description
• Agreed FMV (Vermont appraisal recommended)
• Mortgage balance; marital equity
• Equitable shares per 15 V.S.A. § 751 factors
• Buyout: Keeping spouse compensates the other's equitable share
• Mandatory refinancing deadline: e.g., 90–180 days after Decree
• Fallback provision: If refinancing fails, house listed for sale
• Deed: Vacating spouse executes Quitclaim Deed or Warranty Deed

Recording the Deed in Vermont

Vermont is unique: land records are maintained by Town Clerks, not a county recorder.

1. Prepare a Quitclaim Deed
2. Execute and notarize
3. Record at the Town Clerk's office for the town where the property is located
4. Fee: approximately $15–$25
5. Check Vermont Property Transfer Tax — divorce-related transfers may qualify for exemption

Option 2 — Sell and Split the Proceeds

Property Settlement Agreement must include:

• Net proceeds split after mortgage payoff and closing costs
• Timeline for listing after Decree
• Agent selection process
• Occupancy and carrying costs
• Price reduction authorization
• Minimum acceptable price
• Capital gains allocation (long-term capital gains rates may apply)

Option 3 — Deferred Sale (With Children)

Property Settlement Agreement must include:

• Triggering event (youngest child turns 18, etc.)
• Occupying parent responsible for all carrying costs (mortgage, taxes, insurance, maintenance)
• Non-occupying spouse's equity protection (no refinancing/borrowing without consent)
• Capital improvement approval
• Sale process at triggering event

Last reviewed: March 2026 | Equitable distribution (15 V.S.A. § 751) | Vermont Town Clerk — town-level deed recording (unique) | Financial Affidavit required | Refinancing deadline critical | Fallback sale provision | vermontjudiciary.org/family/divorce

Last reviewed: March 2026 · Verify current fees and forms with your local court before filing.