Are gifts matrimonial or non-matrimonial assets?

Gifts from your spouse 

Gifts between spouses are usually considered matrimonial and assets worth over £500 will have to be declared in your Form E.  

Engagement rings 

Under section 3(2) of the Law Reform (Miscellaneous Provisions) Act 1970, engagement rings are presumed to be absolute gifts. Therefore, they are not generally considered to be a matrimonial asset unless this presumption can be rebutted, for example, if the parties had an agreement that the ring would be returned should they separate.  

Gifts from other people 

Whether a gift from a third party is matrimonial or non-matrimonial is more complex than gifts between spouses. 

A gift for the couple will usually be a matrimonial asset, whereas a gift for one party will usually be non-matrimonial. However, like other assets, a gift can also become matrimonalised. A common example is a party receiving a gift of money from their parents, which they then use towards the parties’ mortgage. What was a non-matrimonial gift, thus becomes matrimonial.  

Whether an asset is considered a gift, or a loan will also have implications for a financial settlement. It is not uncommon for parties to claim that money received from family is a loan, in order to exclude it from the matrimonial pot. 

If you are considering or going through a divorce and are concerned about protecting gifted assets, contact Vardags today for a free initial consultation with one of our expert divorce solicitors.  

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