If you are going through a divorce in New York, you may be wondering what happens to gifts given to you by your spouse, from family members, or purchased during the marriage. Property division during a divorce in New York follows specific legal rules, and understanding how gifts are classified and divided can significantly impact your financial outcome. Continue reading for more information and consult with an experienced Suffolk County property distribution lawyer today.
What Counts as a Gift Under New York Law?
In the context of a New York divorce, a gift is generally defined as an asset received by one spouse from a third party, like a family member, which was intended to be separate and not marital property. To qualify as a gift, there must be a clear intent and a delivery of the property, and the recipient must accept it. If someone clearly intended to give you something permanently and transferred it to you, it is likely considered a gift.
How Are Gifts Divided During an NY Divorce?
Gifts received by one spouse from a third party are considered separate property. This means they are usually not subject to division. This applies whether the gift was received before or during the marriage.
However, gifts exchanged between spouses during the marriage are generally treated as marital property and are therefore subject to equitable distribution. This is based on the legal presumption that assets acquired during the marriage are marital. Exceptions exist if there is clear, compelling evidence that the giving spouse intended the asset to be the recipient’s separate property. It’s also worth noting that a gift can lose its separate property status if it is commingled with marital assets.
What is Commingling?
Commingling refers to the act of mixing separate property with marital property. When this occurs, separate assets that would typically be exempt from division in a divorce may lose their distinct status and become subject to equitable distribution.
This happens because the funds or assets have been treated in a way that suggests they were intended for the joint use and benefit of the marriage, rather than remaining the individual property of one spouse. Proving that an asset retains its separate property status after commingling can be challenging, as the burden of tracing the funds usually falls on the spouse claiming the separate ownership.
For example, consider if gifted funds are deposited into a joint bank account and used for marital expenses. The funds could be treated as marital assets, regardless of the giver’s intent. Proving the status of a gift often relies on evidence and documentation.
For more information and to secure the help of an experienced legal professional, reach out to a skilled divorce attorney today.
