Financial gifts can become quite a problem when a couple decides to get divorced in Kentucky. Many people understand what assets can and cannot be divided when filing for divorce. However, many don’t understand what happens with financial gifts that have been received by one or both spouses during the life of the marriage.
For the most part, a gift received by just one spouse during marriage will be the sole property of that person upon divorce. This means that even in a community property state, the monetary gift will remain the possession of the person who received it when divorce is filed. This is not automatic though. The recipient spouse must be able to prove that the gift was intended to be for the recipient only.
When it comes to one spouse giving a gift to another during the marriage, this gift is considered martial. This means that the gift can be equally divided upon divorce. Birthday gifts, anniversary gifts, graduation gifts and any other gift given by one spouse to the other may end up divided in divorce.
It is also important that you keep all separate gifts given to you during the marriage separate from marital property. If separate property is kept with marital property, it can be viewed as marital property in the eyes of the court. The easiest example here is if a financial gift to one spouse is deposited into a joint checking account. If both spouses have equal access, the gift is now considered marital financial property.
If you are headed for divorce in Elizabethtown, Kentucky you need to understand what is at stake when it comes to your finances and the asset division process in a divorce. Be sure you have any financial gifts separated from your everyday assets when getting divorced, and be sure to disclose them too.