Dividing assets in a divorce is often one of the most contentious parts of the process, even in otherwise amicable situations. This conflict is often more significant regarding gifted property, whether from one spouse to another or from an outside individual to one spouse. The Frisco divorce attorneys at Albin Oldner Law can help you understand your rights and protect the property that should remain yours.
You must determine whether the gift is individual or marital property
Texas follows community property laws, which generally mean that most assets acquired during the marriage are jointly owned and subject to equitable distribution in a divorce. While many people assume this results in a 50/50 split, the court’s actual goal is an equitable, “just and right” equitable division that helps both spouses maintain financial stability after the divorce.
When dividing property, courts classify all assets and debts as either community or separate property.
- Community property usually includes income earned, property purchased, or debt acquired during the marriage, as defined in Texas Family Code § 3.101.
- Separate property refers to assets owned before the marriage or received in specific ways during the marriage, some of which may not be subject to division.
Gifts are an exception to marital property standards
One of the most common exceptions to how property acquired during a marriage is treated under Texas community property laws involves gifts. Under the Texas Family Code, property received through a gift, inheritance (devise), or descent is generally classified as separate property, even if it was received while you were married. This means it typically belongs only to the spouse who received it and is not included in the division of marital assets.
Examples of gifts that are usually treated as separate property include:
- A cash gift from a parent or friend
- An inheritance received after a loved one’s passing
- Jewelry or other valuables given solely to you
- Real estate or vehicles titled specifically in your name as a gift
Proving you received a gift that qualifies as separate property is important, especially if the item or money was later mixed with community assets. Documentation may still be needed to confirm how that property should be treated in court.
How can a written agreement affect whether my gift is classified as communal property?
In Texas, spouses have the option to change the classification of property through a written agreement. Under Chapter 4 of the Texas Family Code, you and your spouse may agree that certain separate property, such as a gift, will be treated as community property for purposes of division.
This type of agreement is only enforceable if it meets specific legal requirements. It must be in writing, clearly identify the property being reclassified, and be voluntarily signed by both spouses. Simply transferring property into both names, like re-titling a car or adding a name to a bank account,may not enough to change its legal classification under Texas law.
If you’re unsure whether a past or proposed agreement could affect how your assets are divided, an experienced family law attorney can help you review the documentation and protect your interests.
Are engagement and wedding rings considered a gift in my Texas divorce?
Determining who keeps the engagement ring can be a complicated process. Who keeps it is often influenced by factors such as whether you are married, whether the ring is a family heirloom, and whether the dissolution of marriage is filed as at-fault or no-fault.
For example, the Texas Family Code typically considers an engagement ring to be a conditional gift until the marriage takes place, meaning the giver retains ownership of it until the marriage occurs. However, after marriage, the general rule is that it becomes a gift to the receiver.
Gifts between spouses are considered separate property
Under Texas Family Code § 3.005, any property one spouse gives to the other during the marriage is presumed to be a gift of separate property. This applies to physical and financial gifts and includes any future profits or income from that property.
For example, if one spouse gifts the other a piece of land or a sum of money, that property, typically remains the recipient’s separate property. In some cases, like with gifted real estate, formally recording the deed in only one spouse’s name can help establish and protect its classification during a divorce.
How to prove a gift is separate property in a Texas divorce
If you’re claiming certain gifts are separate property in your divorce, you’ll need to prove it qualifies under Texas law. However, it’s up to the spouse claiming the gift to provide clear and convincing evidence that the item or funds were truly intended as a gift and were not commingled with community property.
In some cases, this is straightforward. But, the situation becomes more complicated if you receive a gift or inheritance and later deposit it into a joint account. Under Texas law, any property a married couple owns at the time of divorce is presumed to be community property, even if some of it started out as a gift or inheritance. If separate funds were mixed with shared funds, you’ll need clear and convincing evidence to prove what portion was originally yours.
That’s why keeping clear records of any gifted property you want to claim as your own is important. Bank statements, letters from the giver, or properly titled assets can help support your claim. The divorce attorneys at Albin Oldner Law can guide you through what documentation is needed and help ensure your separate property remains protected in a divorce.
Albin Oldner Law for the divorce and asset division support you need
Understanding what qualifies as separate or marital property isn’t always as clear-cut as many couples expect. Disputes over asset division are among the most common (and complex) issues Texas family courts handle. When the outcome of your property division matters, it’s essential to work with a divorce attorney who can provide trusted legal advice and is committed to protecting what’s rightfully yours.
At Albin Oldner Law, our experienced Frisco divorce attorneys provide honest guidance and strategic support through every stage of the process. Call us at (214) 423-5100 or contact us online to schedule a consultation and learn how we can help you move forward with confidence.
