When a marriage ends in either separation or divorce, an important question that is often overlooked is whether or not you can keep the gifts you received during the marriage. Asset division is often one of the most contentious issues in a divorce and determining how to separate the physical belongings of a couple can be complex. However, in general, gifts are considered separate property. Consult with a Suffolk County property distribution lawyer to learn more about your legal rights and obligations during your divorce.
Are Gifts Considered Separate or Joint Property?
All gifts are not created equal in terms of property ownership during a divorce. Whether an item is considered jointly owned by both spouses or separately owned by one depends on the nature of the gift and how it was intended to be used or owned.
Under New York state law, gifts received during the course of a marriage are generally considered marital property and owned by both spouses in the relationship. This applies to gifts given to one spouse by the other, even if it is a piece of jewelry or some other item that was clearly intended to be a gift for one individual.
Can I Keep Gifts I Received During My Marriage?
Whether or not you can keep a gift that you received during your marriage depends on a variety of information specific to the situation. For the most part in New York, gifts will be considered marital property and subject to distribution during the divorce process. For example, if one spouse’s parents gift them a home, it will likely be considered marital property in the divorce because both spouses used and contributed to the house even though it was only gifted to one of them.
If you want a gift to be yours and not be subject to property division if you and your spouse get divorced in the future, the giver should take precautions to ensure your rights to the asset. Building off of the above example, if your parents want to gift you a piece of property they should prepare an official and notarized document stating that the property transfer is intended as a gift for only you. Both you and your parents should include it on your tax returns.
Even if all proper steps are taken and documentation is created, however, there is a chance that a court will view the item as marital property. During the course of a marriage, items that were once considered separately owned can become joint property if the other spouse used or contributed to the asset financially or otherwise.
The legal process regarding property division can be complex so consult with a skilled attorney for more information and legal advice during your divorce.
