GIFTS FROM PARENTS
IS MINE THE ONLY GIFT FROM MY PARENTS? SHOULD I TELL YOU ABOUT IT?
Gifts from your parents—and other family members and friends—are considered separate property. This means they usually will not be included in the marital estate and may not have to be sold or divided up during the asset division process unless they were made to both spouses jointly.
If your parents have given you a gift during your marriage, that gift is considered a marital asset. This is because marital assets are subject to division in a DM divorce mediation. It means that if your spouse believes that they have a right to that gift, they can ask the court law for an order granting them ownership of the gifted property.
What Happens to Gifts from Parents in a Divorce?
It’s not uncommon for people to receive gifts from their parents, especially in need. Whether it’s for a special occasion, anniversary, holiday, or something else entirely (like a down payment on a house), it’s not uncommon for parents to give their children money or valuable items. But what happens when that couple divorces? Can the non-gifted spouse claim any ownership of that gift?
Parents often gift money to children, especially during the holidays. In some cases, these gifts can qualify as marital assets for divorce. Therefore, it is significant to take precautions to protect those gifts from division in a divorce settlement.
In many states, gifts from parents can be considered marital assets during divorce settlements. This is because gifts are typically separate property. Nonetheless, once a separate property enters a marriage, it can become marital property if used in a way that benefits the marriage.