Gifts During Marriage or De Facto Relationships

 Scenario: Gifts During Marriage or De Facto Relationships

When separating or divorcing, the status of gifts can become contentious. If the gift is considered relationship property, it might be subject to division. It’s crucial to have clarity on whether a gift is personal or shared property to avoid conflicts during separation.

When navigating separation or divorce, the categorization of gifts can indeed become a complex and contentious issue. In New Zealand, the law defines relationship property as assets acquired or earned during the relationship, including gifts exchanged between partners unless proven otherwise. According to the Property (Relationships) Act 1976, gifts given during the relationship are presumed to be relationship property, subject to division upon separation, unless they can be proven to be personal property of the recipient.

Undocumented gifts present a particular challenge. In legal terms, if a gift wasn't clearly intended as personal property of the recipient or documented as such, it may default to being considered relationship property. This means the burden of proof falls on the recipient to demonstrate that the gift was intended to be solely theirs, not shared with their partner. This proof could involve showing explicit statements or actions indicating the gift's personal nature, such as written declarations or circumstances surrounding the gift's exchange that imply it was not meant for joint ownership.

For instance, if a gift like a car or a valuable item was given without a clear declaration of its intended ownership, it might be deemed relationship property unless evidence proves otherwise. In cases where couples have differing interpretations or memories of the gift's intent, courts may rely on evidence like witness testimonies, communications between partners, or financial records showing the source of funds used to purchase the gift.

Navigating the legal intricacies of gift ownership during separation underscores the importance of clear documentation and communication. Couples can protect themselves by maintaining records that clarify the intent behind significant gifts, ensuring mutual understanding and potentially averting conflicts in the event of a relationship breakdown.

References

Property (Relationships) Act 1976.