How are gifts and inheritances treated in the context of divorce?

In the context of divorce, gifts and inheritances are typically classified as separate property. This designation is based on the principle that property acquired by one spouse as a gift or through inheritance is not derived from marital efforts or resources; therefore, it generally remains the sole property of the recipient spouse.

The distinction is important because separate property is not subject to division during a divorce. It is crucial to ensure that the gift or inheritance can be traced back to its origin, as it must demonstrably remain separate from any marital assets to maintain that classification. For example, if a spouse receives a monetary inheritance and deposits it into a joint bank account, it may complicate its status as separate property since it can become co-mingled with marital funds.

In contrast, marital property consists of assets acquired during the marriage through the joint efforts or contributions of both spouses. Assets like jointly purchased homes or shared bank accounts are examples of marital property. Because gifts and inheritances do not originate from the marriage itself, they do not fall into this category.

Understanding the treatment of gifts and inheritances is key for individuals navigating divorce proceedings regarding asset division, as it affects what each party may retain post-divorce.