Since Texas adheres to a community property model in divorce, property accrued during the marriage is split evenly between the parties. This differs from states that use an equitable distribution model in which the court strives to achieve what it believes is a fair outcome.
While this model might seem to simplify the process, confusing issues can still come up. One common example involves gifts exchanged between the spouses or a gift that one spouse received from an outside source during the marriage. If these gifts have financial or sentimental value, it could lead to acrimony. When confronted with this issue, it is important to understand the law for marital and separate property as well as how gifts are assessed.
How gifts are addressed when dividing property in a divorce
The circumstances of assessing gifts between spouses during the marriage can differ. But in general, if a person received a gift from an outside source, it will be categorized as separate property. If, however, the gift was to the couple, it might be viewed as community property unless there is clear evidence that it was meant for one of the spouses.
For example, if one spouse’s relative gave a car, jewelry, money, or another valuable item as a gift, then the court could decide that it was meant for one person and not both. It will then be divided accordingly, likely as separate property.
Gifts between spouses can also lead to disagreements. A person who gave a costly gift to a spouse is likely to protest and at least try to receive a share of it or its value. Commingling can also be part of the determination. If the gift rose in value after it was given, then both sides could have a claim to part of it. Often, this relates to property that tends to rise in value like real estate. It can, however, apply to collectibles like artwork.
Property division can be complex, and guidance can help to navigate it
Proof and records are imperative when gifts are in dispute during property division. A property deed being put in their name could serve as proof as to the intent of the gift and its ownership.
These matters can be confusing and complicated. It adds layers of complexity to an already difficult situation with other issues involved. For assistance, it is useful to have experienced guidance to help with negotiating a workable solution or reaching a positive result in court.