If you recently got married, congratulations! Along with combining households, updating beneficiaries, and reviewing your estate plan, there is one important real estate task that many Vermont couples overlook: reviewing how ownership of their home is titled.

If one spouse owned the home before the marriage, or if you recently purchased a home together, the way your deed is written can have significant legal consequences.

For many married couples in Vermont, owning their primary residence as tenants by the entirety offers important advantages, including automatic transfer of ownership to the surviving spouse without probate and valuable protection from certain creditors of only one spouse.

In this article, we'll explain the different ways real estate can be owned in Vermont, why tenancy by the entirety is often the preferred choice for married couples, and how to change your deed if necessary.

Why Your Deed Matters

Many homeowners assume that getting married automatically changes ownership of their home.

It does not.

Marriage alone does not change the way title to Vermont real estate is held. If one spouse owned the property before the marriage, that spouse continues to own it individually unless a new deed is prepared and recorded.

Likewise, if a married couple purchases property together, the deed should clearly state the form of ownership that is intended.

Taking a few minutes to review your deed today could avoid significant legal issues in the future.

The Different Ways to Own Vermont Real Estate

Sole Ownership

One individual owns 100% of the property.

This commonly occurs when someone purchases a home before getting married.

If the owner later dies, the property generally becomes part of that person's probate estate unless other estate planning arrangements apply.

Tenants in Common

Two or more people each own a separate interest in the property.

The ownership percentages may be equal or unequal.

When one owner dies, that owner's interest passes according to their will or, if there is no will, under Vermont's intestacy laws. It does not automatically pass to the surviving co-owner.

Joint Tenants with Right of Survivorship

Joint tenants own the property together with a right of survivorship.

When one owner dies, that owner's interest automatically transfers to the surviving joint tenant without probate.

While this avoids probate, it does not provide the unique legal protections available to married couples who own property as tenants by the entirety.

Tenants by the Entirety

Tenancy by the entirety is a special form of ownership available only to legally married couples in Vermont.

Like joint tenancy, it includes the right of survivorship, meaning that when one spouse dies, the surviving spouse automatically becomes the sole owner without the need for probate.

However, tenancy by the entirety offers additional legal benefits that are not available with ordinary joint tenancy.

For many married couples, it is considered the preferred way to own their primary residence.

Why Tenancy by the Entirety Is Often the Best Choice

Automatic Transfer to the Surviving Spouse

One of the greatest advantages is simplicity.

If one spouse dies, ownership automatically passes to the surviving spouse without the delays and expense of probate.

This provides certainty during an already difficult time.

Protection from Certain Creditors

Another important advantage involves creditor protection.

Under Vermont law, property held as tenants by the entirety generally receives greater protection from the creditors of only one spouse than property owned individually or as joint tenants.

While every situation is different and important exceptions can apply, a creditor holding a claim against only one spouse generally cannot force the sale of property held as tenants by the entirety to satisfy that individual spouse's debt.

This protection typically does not apply when both spouses are legally responsible for the obligation, such as a jointly signed mortgage or other joint debt.

Because creditor rights can depend on the specific facts and applicable law, married couples should consult an experienced Vermont real estate attorney regarding their individual circumstances.

Neither Spouse Can Act Alone

Property owned as tenants by the entirety belongs to the married couple together.

As a result, one spouse generally cannot sell, transfer, or mortgage the property without the other spouse's participation.

Likewise, both spouses generally must sign any future deed or mortgage affecting the property.

This helps protect each spouse's ownership interest.

A Common Situation

Consider this example.

John purchased a home in Burlington several years before marrying Susan.

After their wedding, John assumes Susan automatically becomes a co-owner because they are now married.

Unfortunately, that is not how Vermont law works.

John remains the sole owner unless a new deed is prepared and recorded.

If John wants both spouses to own the property as tenants by the entirety, he must sign and record a new deed transferring ownership from himself individually to himself and Susan as tenants by the entirety.

Once the new deed is recorded, they enjoy the benefits of this special form of ownership.

How to Change Your Vermont Home to Tenancy by the Entirety

If you are already married and your home is not owned as tenants by the entirety, the process is generally straightforward.

Step 1

Review your current deed to determine exactly how ownership is presently held.

Step 2

Consult an experienced Vermont real estate attorney to confirm that tenancy by the entirety is appropriate for your situation.

Step 3

Prepare a new deed transferring ownership into the names of both spouses as tenants by the entirety.

Step 4

Sign the deed with the required formalities.

Step 5

Record the deed in the land records of the Vermont town or city where the property is located.

Once the deed has been properly recorded, the new ownership arrangement generally becomes effective.

Is There Vermont Property Transfer Tax?

Many homeowners worry that changing ownership after marriage will trigger Vermont Property Transfer Tax.

Fortunately, transfers between spouses to create a tenancy by the entirety are generally exempt from Vermont Property Transfer Tax when the applicable legal requirements are satisfied.

An attorney can determine whether your particular transfer qualifies for the exemption.

Frequently Asked Questions

Does getting married automatically put my spouse on the deed?

No. Marriage alone does not change ownership of Vermont real estate. A new deed must be prepared and recorded.

Can unmarried couples own property as tenants by the entirety?

No. In Vermont, tenancy by the entirety is available only to legally married couples.

Does tenancy by the entirety avoid probate?

Yes. When one spouse dies, ownership generally passes automatically to the surviving spouse without probate.

Can one spouse sell the property without the other?

Generally, no. Both spouses normally must participate in transferring or mortgaging property held as tenants by the entirety.

If I bought my house before getting married, can I change ownership now?

Yes. In most cases, a new deed can be prepared and recorded transferring the property to both spouses as tenants by the entirety.

Checklist: How to Change Your Vermont Home to Tenancy by the Entirety

✔ Review your current deed.

✔ Confirm how title is currently held.

✔ Meet with a Vermont real estate attorney.

✔ Prepare a new deed creating a tenancy by the entirety.

✔ Sign the deed.

✔ Record the deed in the appropriate Vermont land records.

✔ Keep a certified copy with your important documents.

Let Peet Law Group Help

If you recently married or are planning to marry, now is an excellent time to review how your Vermont real estate is owned.

At Peet Law Group, we help homeowners throughout Vermont prepare and record deeds, review existing ownership, and ensure that title is held in a manner that reflects their goals.

If you would like us to review your current deed or prepare a new deed creating a tenancy by the entirety, contact Peet Law Group. We would be happy to help you protect your home and your family's future.