How to Transfer a Car Title After Divorce in Vermont

The One-Year Window You Cannot Miss

Vermont charges a 6% Purchase and Use Tax on vehicle transfers. On a car worth $25,000, that's $1,500 out of pocket. But transfers between former spouses are fully exempt — if you complete the paperwork within one year of the date your divorce became absolute.

Day 366? The exemption no longer applies, and the DMV assesses the standard 6% on the vehicle's fair market value. This is one of the most expensive deadlines people miss after a Vermont divorce.

What You Need Before Going to the DMV

Gather these before scheduling your appointment:

From your ex-spouse:

• The original certificate of title, signed by both current owners on the back in the "Assignment of Ownership" section. The transferring spouse signs as the "seller." The keeping spouse is the "buyer."

From your records:

• A certified copy of the absolute divorce decree showing the vehicle was awarded to you
• Any lien release letters if the vehicle had an outstanding loan (the lender must formally release the lien before the DMV will process the transfer)

DMV forms to complete:

• Form TA-VD-119 — Registration, Tax, and Title Application
• Form TA-VT-014 — Certification of Tax Exemption (this is what triggers the 6% waiver)

How to Complete Form VT-014

Form TA-VT-014 is the document that proves your transfer qualifies for the tax exemption. You'll certify that the vehicle is being transferred pursuant to a divorce decree and provide the date the divorce became final. The DMV cross-references this against your certified decree to confirm the transfer falls within the one-year window.

Without this form, the DMV treats the transfer as a standard sale and charges the full Purchase and Use Tax.

The Fees You Will Pay

Even with the tax exemption, there are standard DMV fees:

So a typical transfer runs about $251 total for a standard gas car — a fraction of what you'd pay if you missed the exemption window.

What If There's an Outstanding Loan?

If the vehicle still has a lien, you need the lender to release it before the DMV will process the title transfer. This usually means the spouse keeping the car must refinance the auto loan into their name alone. The original loan stays on both parties' credit reports until the refinance closes.

Get the lien release in writing from the lender, and bring that document to the DMV along with everything else.

Don't Forget Insurance

Before driving the vehicle under the new title, make sure you have a separate auto insurance policy in your name. If you were on a joint policy, you'll need to split it. Confirm that the policy meets Vermont's current minimum requirements.

Cancel or transfer the old joint policy only after the new individual policy is active — avoid a gap in coverage.

Our Vermont After-Divorce Checklist includes a vehicle transfer timeline, a form completion walkthrough, and a deadline tracker so you don't miss the one-year exemption window.

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