One of the most contentious issues spouses face during divorce is property distribution. During a divorce, you may worry about how your assets will be divided between you and your former spouse, as it can affect your overall financial security. Massachusetts is an equitable distribution state. This means the court will divide the assets acquired during the marriage fairly, but not necessarily equally. Generally, this can lead to an unfavorable division of assets as one spouse may receive a larger share of marital property if the court deems it appropriate. To protect your finances, it is in your best interest to acquire the legal services of one of our skilled Bristol County Division of Assets Attorneys who can help you navigate the intricacies associated with this legal process. Keep reading to discover how the division of assets is handled in a Massachusetts divorce and whether gifts are considered marital or separate property.

How Are Gifts Handled During the Division of Assets in a Divorce?

As mentioned above, Massachusetts is an equitable distribution state, meaning judges have broad discretion to determine what division of assets is fair based on the specific circumstances of each case. Essentially, this means that marital property is divided in whatever way the court deems is fair, rather than automatically granting an equal 50/50 split. Marital property is considered any assets that were accumulated during the marriage. Separate property is any assets that were accumulated outside of the marriage. These assets are not up for division. Typically, marital property includes any income or property that was acquired during the marriage.

The courts consider several factors to determine a fair division of marital property. The following include, but are not limited to, the factors a judge will consider to determine a fair division of assets:

  • The age of each spouse
  • The physical and mental health of each spouse
  • The length of the marriage
  • Each spouse’s income and earning capacity
  • Each spouse’s financial obligations
  • Each spouse’s conduct during the marriage
  • Each spouse’s education

In most cases, the judge will divide marital assets fairly equally. However, in some cases, the court will grant one spouse a larger portion of marital property if the other spouse negatively impacts the family financially. Further, the court may consider separate property when determining the division of assets.

When Are Gifts Marital vs. Separate Property?

  • Gifts from a third party to one spouse – generally separate property
  • Gifts given to both spouses – typically marital property
  • Gifts exchanged between spouses – generally marital property
  • Gifts mixed with joint finances – may become marital property
  • Gifts clearly intended for one spouse and kept separate – remain separate property

Are Gifts Considered Marital Property in Massachusetts?

In some Bristol County and Southeastern Massachusetts divorce cases, gifts can be considered either marital or separate property. If the gift was given to their spouse by the other spouse, the gift will usually be considered marital property. Similarly, if the gift was given to both spouses, it is a marital asset. However, when a gift is given from a non-spouse, these assets are usually considered separate property and are exempt from divorce.

Examples of How Courts Classify Gifts

  • Wedding gifts addressed to both spouses – marital property
  • Anniversary gifts given to the couple – marital property
  • Birthday gifts addressed to only one spouse – separate property
  • Inheritances given to one spouse – generally separate property
  • Gifts used jointly in the home, like appliances or furniture –  marital property

How Can You Keep Gifts in a Massachusetts Divorce?

If you wish to retain ownership of a gift during the divorce process, you must show that it is technically separate property and not a shared marital asset.

Steps to Protect a Gift

  • Keep records of who gave the gift and when it was received
  • Maintain documentation to support claims that the gift was intended only for you
  • Avoid depositing gifted funds into joint bank accounts
  • Do not add your spouse’s name to the deed or title
  • Pay related taxes or insurance using separate funds
  • Keep the asset physically and financially separate from marital property

What Happens If a Gift Is Commingled?

It’s important to understand that, like all property, gifts may become marital property if they are commingled with shared assets. This is an incredibly common issue in Bristol County divorces, so understanding how commingling occurs can help you take the necessary steps to protect your property.

Examples of Commingling That Can Change Ownership

  • Depositing gifted money into a joint bank account
  • Using gifted funds to purchase jointly owned property
  • Adding your spouse’s name to the title or deed
  • Using the first regularly for shared expenses

Massachusetts courts often consider commingling when deciding whether or not an asset should be included as part of the marital estate when dividing property between spouses.

Contact an Experienced Massachusetts Property Division Attorney

For more information on how marital assets are divided in a divorce, please do not hesitate to discuss your circumstances with an attorney at the Law Offices of Cynthia L. Hanley, P.C. Our firm is committed to helping our clients protect their hard-earned assets. Contact our firm to learn how we can represent your best interests.