10 Vermont Divorce Mistakes to Avoid (2026)

Mistake #1 — Not Filing the Financial Affidavit

Vermont requires a Financial Affidavit from both parties in all divorce cases — including uncontested ones. Filing without it will cause rejection or delay.

Fix: Both parties complete and file the Financial Affidavit before or at the time of filing. Do not skip this step even in an agreed divorce.

Mistake #2 — Filing for Divorce and Expecting Immediate Completion

Vermont allows filing immediately upon arrival — but the Decree cannot be entered until 6 months of Vermont residency is satisfied. Many people assume a fast completion and are surprised by the wait.

Fix: File as early as possible so the 6-month clock is running. You don't have to wait to file — but you do have to wait for the Decree.

Mistake #3 — Recording the Deed at a County Office

Vermont land records are maintained by Town Clerks — not county recorders. Vermont has no county recorder system for property deeds.

Fix: After the Decree, record the Quitclaim Deed at the Town Clerk's office for the town where the property is located — not any county office.

Mistake #4 — Using "Alimony" or "Spousal Support" Instead of "Spousal Maintenance"

Vermont's statutory term is "spousal maintenance" (15 V.S.A. § 752). While using different terminology in a Property Settlement Agreement may not invalidate it, always use Vermont's specific statutory term.

Fix: Use "spousal maintenance" in all Vermont divorce documents. Check court forms to confirm consistent terminology.

Mistake #5 — Not Including a Refinancing Deadline for the House

If one spouse keeps the marital home, the other remains liable on the mortgage until refinancing is completed.

Fix: Include a specific refinancing deadline (90–180 days after Decree) and a fallback sale provision. Include an indemnification clause for the vacating spouse's mortgage liability.

Mistake #6 — Skipping the QDRO

The Decree alone does not transfer employer retirement benefits. A QDRO is required for all ERISA plans.

Fix: After the Decree, engage a QDRO specialist. For Vermont state employees in the Vermont State Employees' Retirement System (VSERS), contact VSERS for DRO procedures.

Mistake #7 — Incomplete Property Settlement Agreement

The Family Court will not enter the Decree if the agreement is incomplete. Every asset, debt, and financial matter must be addressed.

Fix: Address every marital asset (real estate, accounts, retirement, vehicles) and every marital debt (mortgage, loans, credit cards) in the Property Settlement Agreement.

Mistake #8 — Not Addressing All Marital Debts

Debt assignment in the Separation Agreement does not bind creditors. If your ex defaults on a joint debt assigned to them, the creditor can still pursue you.

Fix: Refinance joint debts into the responsible party's sole name before the Decree wherever possible. Include indemnification language for all assigned debts.

Mistake #9 — Using "Legal Custody" and "Physical Custody" Language

Vermont uses specific terms: "legal responsibility" and "physical responsibility" — not custody. Vermont court forms use this terminology.

Fix: Use Vermont's statutory terms in all Parenting Plan documents and court forms.

Mistake #10 — Not Updating Beneficiary Designations

The Decree does not automatically change beneficiary designations on life insurance, retirement accounts, or payable-on-death accounts.

Fix: Update all beneficiary designations immediately after receiving the Decree. Vermont courts cannot compel insurers or plan administrators to act on the Decree alone.

Last reviewed: March 2026 | Financial Affidavit mandatory (both parties) | File immediately — 6 months before DECREE (15 V.S.A. § 592) | Vermont Town Clerk — land records | "Spousal maintenance" (15 V.S.A. § 752) | "Legal responsibility" / "physical responsibility" — Vermont's terms | VSERS DRO | Refinancing deadline critical | Equitable distribution (15 V.S.A. § 751) | vermontjudiciary.org/family/divorce | vtlegalaid.org

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