In New Jersey, all assets acquired by either spouse during the marriage are considered jointly owned and are therefore subject to property distribution during the divorce process. However, certain gifts may be exempt from this rule. Continue reading and consult with a Sparta property distribution attorney to learn more about whether you can keep gifts received during your marriage in your divorce.
Are Gifts Marital or Separate Property?
Gifts received during the course of a marriage can be considered either marital or separate property depending on the details of the situation.
A gift that was given to both you and your spouse will always be classified as joint property owned by both of you. This could include wedding presents, housewarming gifts, anniversary presents, or anything else that was specifically given for you both to use or benefit from.
Gifts given between spouses are also generally considered marital property. If your spouse gifted you a car, for example, or you bought your spouse a nice piece of jewelry, it is classified as an interspousal gift. Regardless of whether marital or separate funds were used to purchase these gifts, a court will consider them to be jointly owned.
In New Jersey, some gifts can be considered separate property. If the item or property was gifted by an individual outside of your relationship, like a friend or family member, and the individual specifically stated that the gift was intended for you and you alone, it could be considered separate property. However, it is important that you take the proper steps to ensure the gift remains separate.
Can I Keep the Gifts I Got During My Marriage in My Divorce?
If a gift was given to you and your spouse as a couple or if your spouse gifted you an item then no, you cannot keep the item in the divorce. You may be able to maintain ownership or split the value depending on how equitable distribution works out, but these gifts will be subject to property division.
If, however, you received a gift from a family member or friend who specifically gave the item or property to you then you may be able to keep the gift and it will not go through property distribution. To ensure you can keep the gift, you must maintain meticulous records proving how you acquired the item and from who. If the gift was money or property you should pay the appropriate taxes using separate funds.
You should also ensure that the property does not become jointly owned over time. This can happen in a variety of ways. For example, if you were gifted money and deposited it in a jointly owned account, it will likely be considered marital property. If you were gifted a home and put your spouse’s name on the deed, it will also be deemed jointly owned and subject to property division. Even if your spouse simply contributes to the property by maintaining the home, paying for renovations, contributing to property taxes, etc. a court could determine that the gift is now marital property.
Discuss your divorce with a skilled family lawyer for more information and legal representation.
