What Happens to Gifts Received During the Marriage in Property Division?

During a divorce, the process of dividing property can bring up many questions, especially when it comes to personal items and gifts exchanged during the marriage. You may be wondering if that expensive watch your spouse gave you for your anniversary or the inheritance from your grandmother will be included in the division of assets. In Illinois, the law makes a clear distinction between marital and non-marital property, and understanding how gifts are classified is essential for protecting what is rightfully yours.

At Corri Fetman & Associates, Ltd., we know that these items often hold sentimental as well as monetary value. Here’s what you need to know about how gifts are handled in an Illinois divorce:

• The Source Matters: Gifts from a third party to only one spouse are typically considered non-marital property.
• Gifts Between Spouses: Items gifted between spouses are generally classified as marital property.
• Commingling Can Change Things: If a non-marital gift is mixed with marital assets, it may lose its separate identity.
• Proof is Key: The burden of proof lies with the person claiming an asset is non-marital.

Navigating these nuances requires a strategic approach. Our team is here to provide the clarity and guidance you need to protect your assets with confidence.

Are Gifts from Third Parties Considered Marital Property?

Generally, no. Under Illinois law, property acquired by one spouse as a gift or inheritance from someone other than their spouse is considered non-marital property. This means if your parents gave you a sum of money for a down payment on a house, or if you inherited a classic car from an aunt, those assets belong to you alone and are not subject to division in the divorce.

However, how you handle that gift after receiving it is critical. For example, if you deposit inherited money into a joint bank account that is used for marital expenses, you risk “commingling” the funds. When non-marital property is mixed with marital property to the point where it can no longer be distinguished, the court may determine it has become marital property and is now divisible.

What About Gifts Between Spouses?

This is where things can get more complicated. A gift from one spouse to the other during the marriage is often presumed to be marital property. For instance, if your spouse buys you a piece of fine jewelry for a birthday, that item is typically considered part of the marital estate. The law often views such exchanges not as a formal transfer of separate property, but as a purchase made with marital funds for the benefit of the marriage. While it may feel like a personal gift, the court will likely include its value in the overall pot of assets to be divided equitably.

How Can I Prove a Gift Was Meant for Me Alone?

If you believe a gift should be classified as your non-marital property, you must provide clear and convincing evidence to the court. Simply stating it was a gift to you is not enough. Effective evidence is crucial for protecting your separate assets.

To support your claim, you can use:

• Testimony from the Giver: A statement or testimony from the person who gave the gift, clarifying their intent for it to be solely for you.
• Written Documentation: A card, letter, or email accompanying the gift that specifies it was for you alone.
• Transaction Records: Proof that the gift was deposited into a separate bank account that you alone controlled and was never mixed with joint funds.
• Title or Deed: If the gift was a vehicle or real estate, showing that it was titled exclusively in your name can be powerful evidence.

Contact Us

At Corri Fetman & Associates, Ltd., we provide the direct, no-nonsense legal counsel you need to navigate property division with confidence. If you are concerned about how your assets will be treated in a divorce, contact us today for a confidential consultation. Let us help you secure your financial future.