Updated October 8, 2026. Quick answer: No. Vermont is a common law state. At divorce, 15 V.S.A. section 751 has the court “equitably divide and assign the property”, and at death the surviving spouse can elect one-half of the balance of the probate estate. The IRS lists nine community property states.
Vermont community property at a glance
| Item | What the documents say |
|---|---|
| Regime | Common law |
| At divorce | The court equitably divides and assigns the property, whoever holds title (15 V.S.A. 751) |
| At a spouse’s death | An election to take one-half of the balance of the probate estate (14 V.S.A. 319) |
| Federal basis at the first death | A qualified joint interest between spouses: one-half is included in the estate and steps up |
| Source | Vermont General Assembly (Legislative Council); IRS Publications 551 and 555; 26 U.S.C. 1014 |
What the Vermont statutes say
Vermont’s divorce statute reaches property whoever holds it. The court looks at property “whether in the names of either or both parties, or a nominee”, and the section lists property that “shall not be included in the marital estate”.
At divorce in Vermont
The standard is equitable division after the factors the section lists (length of the marriage, age and health, income, contributions and others). The text read sets no fixed 50/50 rule.
At a spouse’s death in Vermont
14 V.S.A. 319 lets a surviving spouse “elect to take one-half of the balance of the probate estate” in place of the will, after allowances, claims and expenses. The election is barred if the spouse waived it. Unlike many states, the text read bases the share on the probate estate and does not scale it by length of marriage.
What it does to basis when the first spouse dies
Because Vermont is not on the IRS’s list of community property states, a couple’s basis at the first death depends on title. IRS Publication 551 says to “Include one-half of the value of a qualified joint interest” in the decedent’s gross estate, and the survivor’s basis is the cost of the survivor’s own half plus the basis in the half inherited. Property in the decedent’s name alone is different: 26 U.S.C. 1014(a) gives the heir a basis equal to the property’s fair market value at the date of the decedent’s death.
Computed illustration, not tax advice: suppose a Vermont couple paid $100,000 for shares held as a qualified joint interest, and the shares are worth $400,000 when one spouse dies. The survivor’s basis is the total of two halves: $200,000 for the half that steps up plus $50,000 as the cost of the survivor’s own half, which makes $250,000. A sale at $400,000 would then show a gain of $150,000. In a community property state the same facts would give a basis of the whole $400,000. CMG’s common law step-up page goes through the difference.
What the documents do not say
- The documents read do not state a rule for a couple who moved to Vermont.
Common mistakes
- Assuming the one-half reaches nonprobate assets; the section measures it against the balance of the probate estate.
- Assuming the answer in this state settles it for a couple who move; the rules depend on the state where the spouses are domiciled and, for property in a trust, on the trust.
Related: why only half steps up in a common law state, Vermont retirement taxes, and Vermont probate cost.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Compare vetted advisors for couples estate planning
If your portfolio is $250,000 or more, this connects you (free, with no obligation to hire anyone) with 2 to 3 vetted advisors.
Before you start, what actually happens. The matching service is run by WiserAdvisor, an independent advisor-matching company. It opens on their site, asks for your ZIP code and a few questions, and matches you with 2 to 3 vetted advisors. It is free to you.
WiserAdvisor states the service is built for portfolios of $250,000 and above. By submitting, you consent to emails, phone calls and text messages from WiserAdvisor and up to three advisors, so expect to be contacted. Clear Money Guide may earn a referral payment for a qualifying completed form, whether or not you ever hire anyone.
Opens on WiserAdvisor’s site in a new tab.
See how an advisor plans your estate
Price the destination before you decide. The matching service below introduces you to advisers who pay to meet you.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide may earn a referral payment through this service, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- 15 V.S.A. 751 Property settlement (Vermont Statutes Online): https://legislature.vermont.gov/statutes/section/15/011/00751
- 14 V.S.A. 319 Elective share of surviving spouse; notice of rights (Vermont Statutes Online): https://legislature.vermont.gov/statutes/section/14/042/00319
- IRS Publication 551, Basis of Assets (December 2025): https://www.irs.gov/pub/irs-pdf/p551.pdf
- 26 U.S.C. 1014, Basis of property acquired from a decedent (United States Code, 2024 Edition): https://www.govinfo.gov/link/uscode/26/1014?link-type=html
Sources: the primary documents linked above, read on October 8, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.