Continue reading for more information regarding how gifts are divided in a divorce in New Jersey. Work with a knowledgeable Union County property division attorney for skilled representation.
What is Considered a Gift?
In New Jersey divorce law, a “gift” is typically defined as a voluntary transfer of property from one party to another. This definition applies regardless of whether the gift was received from a third party, like a family member, or from one spouse to the other.
Gifts can be given to one spouse, to the couple, or from one spouse to the other. To qualify as a legal gift, the giver must have the intent to permanently transfer the property, deliver the gift, and the recipient must accept it. A transfer of property, where the giver clearly intended for you to keep it permanently, is generally considered a valid gift. This can include money, property, jewelry, or other items of value.
How Are Gifts Divided in an NJ Divorce?
In New Jersey, the classification of a gift as either marital property or separate property is important for determining how it will be divided in a divorce. Generally, a gift received by only one spouse from a third party is considered separate property and is not subject to equitable distribution. The receiving spouse should retain 100% ownership of that gift.
For example, if a wife’s grandmother gifts her a diamond necklace during the marriage, that necklace is typically the wife’s separate property. Similarly, an inheritance received by one spouse is treated as a gift and remains their separate property.
There are two main ways a gift becomes marital property, subject to equitable distribution:
- Gifts to the couple: Any gift given to both spouses jointly (such as wedding gifts, a down payment on a house, or a car) is considered marital property. This property must be divided fairly between the parties during the divorce.
- Commingling: If separate property (like a gift received by one spouse) is later commingled or used for the benefit of the marriage, it can be transmuted into marital property. For example, if a spouse receives a cash gift and deposits it into a joint savings account used for family expenses, or uses the funds to improve a jointly owned marital residence, the gift may lose its separate property protection and become divisible in the divorce.
When a gift is considered separate property, the asset is awarded entirely to the spouse who received the gift. If it is marital property, the asset is subject to New Jersey’s principle of equitable distribution, meaning it must be divided fairly, though not necessarily equally (50/50), based on the statutory factors outlined in NJSA 2A:34-23.1. The court will determine a fair division based on the specific circumstances of the case.
Reach out to a skilled family lawyer for more information and legal advice today.
