Gifts can hold significant sentimental and financial value, and figuring out what happens to them during divorce can be more complicated than most people expect. Whether the gift was a wedding present, a family heirloom, or a luxury item from one spouse to another, the outcome depends on a number of legal and practical factors.
Here’s what you need to know about how courts approach gift division during a divorce.
Who Gave the Gift and to Whom?
The first question is whether the gift was given to one spouse individually or to the couple jointly.
Gifts from a third party to one spouse are usually considered separate property. For example, if your parents gave you a necklace for your birthday, it is likely to remain yours.
Gifts given jointly to the couple, such as wedding presents or a jointly titled vehicle, are typically treated as marital property. These are usually divided equitably during the divorce, either by agreement or court order.
It is important to keep documentation or evidence showing how and when the gift was received, especially if it was intended only for one spouse.
Gifts Between Spouses
When spouses give each other gifts during the marriage, those gifts are often considered marital property, especially if they were purchased with joint funds. For example, if one spouse buys the other an expensive watch for an anniversary using money from a shared account, the court may treat that watch as marital property subject to division.
However, there are exceptions. In some cases, courts may view the gift as separate property based on the intention behind the gift, the circumstances of the marriage, or any agreements between the spouses.
Family Heirlooms and Sentimental Gifts
Family heirlooms or sentimental items passed down through generations can be a particularly sensitive issue. If the heirloom was given to one spouse individually, and that can be clearly demonstrated, it is usually treated as separate property.
Still, if the heirloom was used or displayed jointly or passed down with the understanding that both spouses would share in its use or value, it may be considered part of the marital estate. In these cases, spouses may negotiate who keeps the item or how to compensate the other party for its value.
What About Gifts to Children?
If gifts were given to your children during the marriage, they typically remain the property of the child and are not subject to division. However, if either parent has concerns that the other is using the child’s property for personal benefit, the court can step in to ensure the gift is preserved for the child’s use.
Reclaiming Gifts After Separation
In most situations, you cannot reclaim a gift you voluntarily gave to your spouse. Once a gift is given, ownership transfers. If you gave your spouse a car or jewelry during the marriage, you usually cannot demand it back unless you can prove it was a loan, not a gift.
The way gifts are handled in a divorce depends heavily on the type of gift, the relationship of the giver, and how the gift was treated during the marriage. If you are concerned about how certain gifts will be treated, it is best to keep clear records, consider a prenuptial agreement, and speak with a legal professional who can help you navigate the issue.
