When you and your spouse say “I do,” you likely envision a life full of love and happiness. Unfortunately, however, you may find yourself navigating the complex divorce process, leaving you unsure of your options. One of the most complex and often contentious aspects of this process is the division of marital assets, especially as many couples are unsure of what will happen to the gifts exchanged and received during this process. If this reflects your circumstances, the following blog explores what you should know about these matters, including the importance of working with Long Island property division lawyers to assist you during these complex times.
Are Gifts Considered Marital or Separate Property?
In general, when you and your spouse are unable to determine how to divide your marital assets, the court will intervene. As such, the first step in the process will be to determine what is considered marital property in accordance with New York law. Generally, in New York, marital property is anything obtained during the course of your marriage, regardless of who technically owns it. It’s important to understand that separate property can also become marital property if it is co-mingled with other marital assets. For example, if you deposit funds that are separately owned into a joint bank account, those funds will become marital property.
As such, gifts may be considered marital property if they are given from a third party solely to one spouse. Similarly, gifts exchanged between spouses are often considered separate property. However, if they are jointly used, it will be deemed marital property and thus will be subject to division. For example, if your spouse gifts you a watch that only you use, it will likely be considered separate property. However, if you gift your spouse a boat that you both utilize and contribute towards in terms of maintenance or insurance, it would likely be classified as marital property.
You should note that under New York’s equitable distribution laws, marital property is divided based on each spouse’s contributions to the marriage and circumstances. This means property may not be divided 50/50 automatically, and instead could be divided on a 40/60 split if that is what the court determines to be fair.
What Happens to Engagement Rings and Wedding Bands?
One of the most complex assets during a divorce is something that many fail to consider – wedding bands and engagement rings. In general, you’ll find that engagement rings are considered conditional gifts, meaning that if the wedding does not happen, the recipient is usually required to return the ring. However, when the marriage occurs, the ring becomes the separate property and thus can remain in the possession of the recipient. This is also the case for most wedding bands.
However, there may be exceptions in certain circumstances, like in the event that the ring is a family heirloom from the giver’s family. In these instances, the court may decide to return the ring to the original family as opposed to being divided.
As you can see, navigating the divorce process when assets and gifts are involved can be an incredibly difficult process. That is why it’s in your best interest to connect with an experienced attorney with the Sklavos Law Group, P.C. Our team understands how complicated this process can be, which is why it’s in your best interest to connect with our team. We will do everything in our power to help you fight for the best possible outcome for your unique circumstances. Contact us today to learn how we can fight for you.