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Gray Divorce Financial Specialist

Divorcing in Vermont?
Women Over 50 See Household Income Drop 45%. You Don't Have To.

Pensions, retirement accounts, real estate — Vermont's equitable distribution requires expertise. This guide shows you exactly what you're entitled to.

Leanne Ozaine, CDFA® & CFP® | Specializing in gray divorce for 50+

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Important Disclaimer: Leanne Ozaine is a Certified Divorce Financial Analyst® and CFP® professional who provides financial education and coaching services only. She is not an attorney and does not provide legal advice, legal representation, or legal services. For legal guidance specific to Vermont divorce law, always consult with a qualified family law attorney licensed in Vermont.

Your Divorce Is 80% About Money. So Why Are You Only Getting Legal Advice?

Here's what nobody tells you: A "fair" settlement can still leave you struggling.

50/50 sounds equal. But if you take the house and your spouse takes the 401(k), only one of you has retirement income. A pension isn't cash. Tax treatment turns "half" into 40% or 60% depending on which half you take.

Your lawyer knows the law. They don't know what you'll live on for the next 30 years.

Most people sign their settlement while still in emotional shock. The brain is in survival mode — the prefrontal cortex that makes rational decisions is literally offline. By the time the fog lifts, the settlement is final.

You need someone whose only job is protecting your financial future — not billable hours, not legal posturing. Someone who can show you exactly what different settlement scenarios mean for your life 5, 10, 25 years from now.

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See Exactly What Your Post-Divorce Life Looks Like — Before You Sign Anything

The 5-step system that shows you what you'll actually live on, so you stop guessing and start knowing.

Know what you'll actually have to live on

Calculate your real post-divorce income — including spousal support, assets, and earning potential — so you negotiate from facts, not fear.

Never miss a document or account

Document gathering checklists tell you exactly what to bring to your attorney — so you walk in prepared, not panicked.

Know if you can really afford to keep the house

Map out your real expenses as a single person — before you fight for something you can't actually maintain.

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The asset identification system helps you find accounts and property you might not even know exist.

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Gray Divorce in Vermont: Navigating Rural Retirement and Permanent Alimony

If you're over 50 and facing divorce in Vermont, you're likely dealing with something most people don't talk about: the complete shift in your financial future when child-related issues are no longer the focus. Your children may be grown and financially independent, which means your entire divorce becomes about protecting and dividing decades of accumulated wealth—and potentially dealing with Vermont's permanent alimony provisions.

This is especially overwhelming if you've never personally managed the household finances—and you're certainly not alone. Many of our Vermont clients are navigating complex financial decisions for the first time during divorce, often involving rural property investments, outdoor recreation industry businesses (ski resorts, tourism, craft breweries), University of Vermont benefits, healthcare industry compensation, or retirement plans built over 30+ year careers in Vermont's aging population.

Why Vermont is different: Vermont is one of only seven states that still allows permanent alimony for long-term marriages—meaning spousal support can continue indefinitely until death or remarriage. Vermont courts can also divide ALL property (not just marital property), giving judges extremely broad discretion. Plus, Vermont has progressive income tax rates (3.35-8.75%), an aging population with unique retirement considerations, and an economy heavily driven by outdoor recreation and tourism with seasonal income patterns.

The fear-to-strength progression: Right now, you might be feeling panic about paying (or receiving) alimony for the rest of your life, confusion about whether the judge can take property you owned before marriage, or worry about surviving Vermont's high cost of living on a single retirement income. That's normal. But here's what we do together: we turn that panic into power by understanding exactly what Vermont law means for YOUR situation, strategically planning around alimony and property division rules, and building a post-divorce financial plan that gives you confidence and security—whether you're staying in rural Vermont or relocating.

Understanding Vermont's Unique Equitable Distribution System

Vermont Courts Can Divide ALL Property (Not Just Marital Property)

Here's what that really means for your situation: Vermont is one of the few states where courts have the power to divide ALL property owned by either spouse—including property you owned before marriage, inheritances, and gifts. This is fundamentally different from most states.

How Vermont's "all property" system works:

What this means in practice:

Vermont law distinguishes between marital property and separate property, but unlike most states, that distinction doesn't create an absolute barrier. Courts look at the totality of the circumstances and can divide separate property if equity requires it.

Marital property in Vermont (typically divided):

Separate property in Vermont (usually protected, but can be divided):

The equitable distribution factors Vermont courts consider:

Critical for gray divorce: If you've been married 25+ years and one spouse has significantly more separate property (inheritance, pre-marital assets), Vermont courts may invade that separate property to ensure the less-wealthy spouse has adequate resources for retirement. This is especially true if one spouse sacrificed career for homemaking.

Vermont's Permanent Alimony: One of Seven States

This is perhaps the most critical issue for Vermont gray divorce cases.

Vermont is one of only seven states that still allows permanent alimony (also called "maintenance")—meaning spousal support can continue indefinitely until the death of either party or the recipient's remarriage. For marriages of 15+ years, permanent alimony is common.

Vermont alimony factors:

Types of alimony in Vermont:

Critical for gray divorce payor: If you're the higher earner in a 20+ year marriage, you may be looking at permanent alimony that continues through your entire retirement. Understanding how to structure settlements to minimize or limit this exposure is critical. Some couples negotiate lump-sum buyouts of alimony obligations.

Critical for gray divorce recipient: If you sacrificed career for family and have limited retirement savings, permanent alimony can be your financial lifeline. Understanding how to secure this right and what happens if your ex declares bankruptcy, retires, or dies requires careful planning.

Modification and termination: Vermont alimony can be modified if there's a "real, substantial, and unanticipated change in circumstances." Common issues include: retirement of the paying spouse, health changes, cohabitation by the recipient (doesn't automatically terminate alimony in Vermont, unlike some states), and changes in income.

Tax note: For divorces finalized after December 31, 2018, alimony is NO LONGER tax-deductible for the payor or taxable income for the recipient (federal law change). This significantly changes the economics of alimony negotiations.

Financial Considerations for Gray Divorce in Vermont

Outdoor Recreation Industry: Vermont's Economic Driver

Vermont's economy is heavily driven by outdoor recreation—ski resorts, hiking/biking tourism, craft breweries, farm-to-table restaurants, maple syrup operations, artisan cheese production. These businesses present unique divorce challenges.

Key outdoor recreation industry divorce issues:

  • Seasonal income: Ski resorts, tourism businesses earn 70-80% of revenue in winter or summer seasons. How do we calculate "income" for alimony?
  • Business valuation complexity: How do you value a ski resort, craft brewery, or agritourism operation?
  • Climate change risks: Shorter ski seasons and warming temperatures threaten long-term viability of winter sports businesses
  • Owner-operator reliance: Many Vermont outdoor businesses are owner-operated with significant personal goodwill
  • Real estate components: Ski lodges, breweries, farm operations often include valuable real estate
  • Liquor licenses and permits: Brewery and restaurant liquor licenses have value
  • Agricultural land valuation: Vermont farms may have development restrictions affecting value

For those new to managing finances: A seasonal business is fundamentally different from year-round employment. A ski resort earning $500K annually but only operating November-March has very different cash flow, expenses, and risks than steady year-round income. Understanding seasonality is critical for alimony calculations and post-divorce budgeting.

Common scenario: Your spouse owns a craft brewery in Burlington or Stowe that's become successful. Annual profit is $200K, but 60% comes from May-October tourist season. You have a $450,000 home, $300,000 in retirement accounts, and the brewery is valued at $700K-$1.2M depending on method. Plus there's potential permanent alimony. How do you divide this while ensuring steady post-divorce income?

Rural Property & Agricultural Land: Vermont's Unique Real Estate Market

Vermont's rural character creates unique real estate considerations for divorce—agricultural land, conservation easements, seasonal properties, and appreciation in areas attracting remote workers and retirees.

Vermont rural property divorce issues:

  • Agricultural land with use restrictions: Vermont's Use Value Appraisal Program (current use) provides property tax breaks but limits development
  • Conservation easements: Many Vermont properties have permanent conservation restrictions affecting value
  • Sugarbush (maple sugaring) operations: Maple syrup operations tied to land may be business or agricultural assets
  • Seasonal vs. year-round homes: Many Vermonters have both—tax and valuation implications differ
  • Remote worker appreciation: COVID-19 drove dramatic appreciation in rural Vermont real estate as remote workers fled cities
  • Affordability on one income: Can you afford property taxes, heating costs, and maintenance on Vermont property post-divorce?
  • Accessibility concerns: Rural Vermont winters are harsh. Can you manage snow removal, heating, and access at 60+ years old?
  • Water and septic systems: Rural properties may have private wells and septic requiring maintenance and eventual replacement

Use Value Appraisal complication: If your property is enrolled in Vermont's current use program (reduced property taxes for agricultural/forest land), the market value may be much higher than the current use value. Selling the property triggers recapture taxes. Understanding these implications is critical for property division.

For gray divorce: At 55-65, taking on a rural Vermont property that requires physical maintenance (plowing, wood heat, well/septic management) may not be realistic. We need to honestly assess whether rural retirement on one income is feasible or whether downsizing to a condo makes more sense.

University of Vermont & Healthcare Benefits

The University of Vermont and Vermont's healthcare systems (UVM Medical Center, Dartmouth-Hitchcock, Copley Hospital) are major employers with complex benefits packages that complicate divorce.

UVM and healthcare industry divorce considerations:

  • University pension benefits: UVM employees may have state pension benefits or TIAA retirement plans
  • Healthcare pensions: Hospital employees may have defined benefit pensions requiring QDRO division
  • 403(b) retirement plans: Common for education and nonprofit healthcare workers
  • Tuition benefits: UVM employees receive tuition remission—how is this valued in divorce (especially if children are grown)?
  • Retiree health insurance: Some Vermont employers provide post-retirement healthcare coverage—extremely valuable
  • Deferred compensation: Physicians and executives may have deferred comp arrangements
  • Faculty sabbaticals: How do we value irregular income patterns from academic careers?
  • Research grants and book royalties: Faculty may have additional income streams requiring analysis

Vermont State pension: State employees (including UVM staff) participate in Vermont's state pension system. These defined benefit pensions require careful analysis for division and are valuable retirement assets.

For gray divorce: Healthcare workers and university employees approaching retirement need careful planning around pension elections, retiree healthcare continuation, and retirement account division. Making wrong choices can cost tens of thousands in lost benefits.

Retirement Accounts & Social Security Planning

For gray divorce, retirement accounts are typically your largest asset—and Vermont's "all property" rule means courts have broad discretion to divide them.

Vermont retirement division considerations:

  • Vermont state pension: State and municipal employees have defined benefit pensions requiring QDRO division
  • Pre-marital account balances: Even pre-marital retirement savings can be divided in Vermont if equity requires
  • QDRO requirements: Need special court orders to divide 401(k)s and pensions without tax penalties
  • Tax implications: Different division methods have different tax consequences
  • Early withdrawal penalties: If under 59½, careful planning avoids 10% penalties
  • Roth vs. Traditional accounts: Roth accounts are worth MORE because taxes already paid

Social Security planning for gray divorce:

  • Married 10+ years? You can claim Social Security benefits based on your ex-spouse's earnings record
  • You can receive up to 50% of their benefit amount (at full retirement age)
  • This doesn't reduce their benefit—you both get full amounts
  • Benefits continue even if your ex remarries
  • You must remain unmarried to collect ex-spouse benefits

Critical timing issue: If you're close to 10 years of marriage, delaying divorce finalization until you cross that threshold can mean thousands in annual Social Security benefits. If you're at 9 years, 10 months—this is worth discussing with your attorney.

Vermont Progressive Income Tax: Post-Divorce Tax Planning

Vermont has progressive income tax rates from 3.35% to 8.75% (top rate kicks in at $204,000 for single filers, $248,350 for married filing jointly as of 2024). This affects divorce planning.

Vermont tax considerations for divorce:

  • Filing status change: Going from married filing jointly to single filing can significantly increase your effective tax rate
  • Alimony taxation: Post-2018 divorces mean alimony is NOT deductible/taxable (federal change)
  • Property division taxation: Transferring property incident to divorce is generally tax-free, but future sale triggers capital gains
  • Retirement account divisions: Proper QDRO allows tax-free division, but withdrawals still taxed
  • Capital gains on home sale: $250,000 exclusion for singles vs. $500,000 for married couples
  • Vermont estate tax: Vermont has an estate tax with $5 million exemption (significantly lower than federal $13.61M in 2024)

Tax bracket awareness: A couple earning $200,000 combined might pay moderate Vermont taxes filing jointly. Post-divorce, if one spouse earns $150,000, they're hit with Vermont's higher marginal rates as a single filer. Understanding this tax impact is critical for alimony and settlement negotiations.

Craft Beverage Industry: Breweries, Cideries & Distilleries

Vermont's craft beverage industry—craft breweries, hard cider producers, artisan distilleries—has exploded. Many gray divorce cases involve ownership or employment in this sector.

Craft beverage business divorce issues:

  • Business valuation: How do you value a growing craft brewery or cidery?
  • Distribution rights: Some Vermont breweries have valuable distribution agreements
  • Real estate component: Many include taprooms, production facilities, retail space
  • Equipment value: Brewing equipment, fermentation tanks, bottling lines have significant value
  • Brand value and goodwill: Vermont craft beverage brands can have national recognition
  • Seasonal sales patterns: Tourism-dependent sales create income volatility
  • Liquor licenses: Vermont liquor licenses have value and restrictions
  • Partnership structures: Many craft beverage businesses are partnerships complicating division

Valuation challenge: A craft brewery might have $2M in revenue but minimal profit while building brand and distribution. Traditional valuation methods struggle with high-growth, low-current-profit businesses. Expert business valuation becomes essential.

Your Divorce Is 80% About Money. Who's Protecting Your 80%?

You don't have to navigate Vermont's permanent alimony rules, "all property" division, and complex financial decisions alone. Let's build your personalized financial roadmap together.

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