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. As such, understanding what gifts may be subject to division during your divorce is critical. 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.
How Are Gifts Treated During a New Jersey Divorce?
New Jersey adheres to the equitable distribution method when dividing property during a divorce. Essentially, this means that, with limited exceptions, assets obtained during the course of the marriage will be subject to division during the divorce. It’s important to understand that the equitable distribution method focuses on dividing property fairly, meaning equal distribution is not always guaranteed.
Under New Jersey law, gifts are treated differently during this process based on who the gift was from, what it was intended for, and how it was handled during the marriage. Whether or not you can keep a gift depends less on what the item is, but rather the circumstances surrounding the gift.
Are Gifts Marital or Separate Property?
Not all gifts are handled the same during a New Jersey divorce. Gifts received during the course of a marriage can be considered either marital or separate property depending on the intent of the giver and how the gift was used and maintained during the marriage.
Gifts That Are Usually Considered Marital Property
Marital property represents any asset obtained by either spouse during the marriage, regardless of who technically owns it. A gift that was given to both you and your spouse will always be classified as joint property owned by both of you, and commonly includes:
- Wedding gifts, anniversary presents, housewarming gifts
- Gifts exchanged between spouses, regardless of whether marital or separate funds were used
- High-value items like jewelry, vehicles, and artworks from one spouse to the other
- Any gift intended to benefit the household or the marriage
Gifts That May Qualify as Separate Property
Separate property generally represents assets owned before or after the marriage, and will remain the property of the spouse who owns it. Under some circumstances, assets obtained during the marriage will remain separate property. Generally, this includes:
- Gifts given by a third party intended for one spouse only
- Inheritances received individually during the marriage
- Property gifted solely to one spouse and kept separate from marital property
- Monetary gifts explicitly intended for use by one spouse
Important Property Classification Considerations
- Who gave the gift matters
- Who the gift was intended for matters
- How the gift was used matters
- Documentation and conduct generally outweigh verbal claims
Can I Keep the Gifts I Got During My Marriage in My Divorce?
Whether or not you are able to keep gifts received during the marriage will depend on how they are classified in accordance with New Jersey property distribution laws. In general, gifts that are deemed marital property are distributed among the couple, while separate property, if properly documented and preserved, may remain your property.
In the event that a gift is considered marital property, it’s necessary to understand that you may not necessarily lose the asset. However, its value will be considered during property distribution and may be offset against other assets. For example, if you give your spouse an expensive watch, they may be able to keep it, though you may receive an asset of equal value as a result.
How Separate Gifts Can Become Marital Property Over Time
Even in the event that a gift begins as separate property, certain actions during the marriage can cause it to lose its status. In general, this is one of the most common ways in which spouses lose their property during a divorce.
Common Ways Gifts Become Marital Property
- Depositing gifted money into a shared bank account
- Adding a spouse’s name to the title or deed of the property
- Using marital funds to maintain or renovate the gift
- Allowing a spouse to make regular financial contributions to the upkeep of the gift
Commingling Warning
- Commingling assets converts separate property into marital assets
- Courts will consider action, not just the original intent of the giver
- Once commingled, gifts are generally subject to equitable distribution
- Reversing commingling is often impossible
Discuss your divorce with a skilled family lawyer for more information and legal representation.
What Will New Jersey Courts Consider When Determining Who Keeps a Gift?
As mentioned, gifts are examined on a case-by-case basis. The judge assigned to the case will consider objective evidence over assumptions or personal claims of ownership.
Factors Commonly Considered by the Courts
- The stated intent of the gift giver (often through cards or messages attached to the gift)
- Whether the gift is documented and traceable
- How it was stored, deposited, or maintained
- If marital funds were used to improve or maintain the gift
- The overall fairness of the property distribution
Contact an Experienced Sussex County Property Division Attorney
At the Paris P. Eliades Law Firm, LLC, we understand that navigating the divorce process in Sussex County and across New Jersey can be incredibly difficult. That is why our firm is committed to helping you fight for the best possible outcome for your circumstances. When you need assistance, do not hesitate to contact our team today to learn how we can represent you.