Property division is often a challenge during divorce proceedings. Different values and cultural traditions may influence what people expect from their spouses or the courts. Particularly when determining what is separate and what is marital property that the spouses may need to divide, cultural traditions can sometimes raise questions about property rights.
For example, in Pakistani marriages, it is traditional for husbands to provide their wives with gifts of valuables, often gold or jewelry, called maher (or sometimes mahr or mehr). This serves as protection for the woman financially in the event of her husband dying or a divorce. If a culturally Pakistani couple follows this tradition and later divorces in New Jersey, there may be disputes about what should become of the jewelry and other gifts the wife received from the husband.
Are gifts from one spouse to the other separate property when couples divorce?
Only some gifts have protection
Property owned before marriage is usually the separate property of one spouse. An engagement ring is an example of a premarital gift that typically remains separate property. An engagement ring is a conditional gift that becomes the property of the recipient when they fulfill the condition of marrying their fiance.
Technically, maher often involves a gift made before the marriage ceremony takes place. The intent is also to provide the wife with separate property. Therefore, it is a gift made before marriage that may be excluded from equitable distribution proceedings.
Gifts made from one spouse to the other during the marriage, on the other hand, may technically be the joint property of the spouses. It may be subject to valuation and division in the divorce proceedings.
Gifts received from outside parties during the marriage might be separate or joint property depending on the circumstances. Gifts intended for the spouses to share are likely marital property. Gifts that are explicitly meant for one spouse, not the couple, are typically separate property that the recipient spouse can retain after the divorce.
The more valuable those gifts are, the more important it may be to properly assess them, ensure an accurate valuation and address them as either marital or separate property during divorce proceedings.
Spouses preparing for a high-asset divorce involving unique elements, including gifts given from one spouse to the other, may require the insight of a professional during property division negotiations. Working with a family law attorney can make it easier for people to address their valuable assets and prepare for divorce proceedings accordingly.