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Can a gift be part of the marital property in the event of a divorce?

Can a gift be part of the marital property in the event of a divorce?

Full question:

My husband and I are heading for a divorce due to reconcilable differences. We have been living in the Flint for over 3 years now. On my birthday two years ago, his father had bought me a car as a gift. Now that we are getting a divorce, he is planning to claim the car for himself, saying that the car was supposed to be a gift to the both of us. The car is the only mode of transportation available for me to commute back and forth from work. Can he legally claim the car for himself?

Category: Divorce
Subcategory: Property Settlements
Date: 04/07/2025
State: Michigan

Answer:

In the US, the division is property in the event of a divorce is a nasty ordeal. States like Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin are the community property states where the spouses are considered equal owners of all marital property. It means that the assets are split equally between the spouses. The remaining states, including Michigan, are equitable distribution states. It means that each spouse has a ‘fair and equitable’ claim on the value of the total marital assets irrespective of the legal ownership of the property.

Chapter 552 of the Michigan Compiled Laws Service deals with the legal provisions pertaining to divorce. MCLS § 552.401 section 1 states the following which clearly shows all assets shall be fairly and equitably divided amongst the spouses in the event of a divorce:
“The circuit court of this state may include in any decree of divorce or of separate maintenance entered in the circuit court appropriate provisions awarding to a party all or a portion of the property, either real or personal, owned by his or her spouse, as appears to the court to be equitable under all the circumstances of the case, if it appears from the evidence in the case that the party contributed to the acquisition, improvement, or accumulation of the property. The decree, upon becoming final, shall have the same force and effect as a quitclaim deed of the real estate, if any, or a bill of sale of the personal property, if any, given by the party's spouse to the party.”

The above provision lays down the basis for the distinction between marital property and separate property. For a property to be termed marital property, it has to be one that was acquired by the spouses by contributing to the “acquisition, improvement, or accumulation of the property.” Separate property involves assets that a party owned before the marriage, gifts or inheritances, assets received after separation or filing, or assets or appreciation traceable to those items. Therefore, it is safe to infer that a gift received from a third party would be separate property and would not be distributed unless the spouse claiming the asset can prove the requirement laid out in MCLS § 552.401 section 1.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

How do you prove irreconcilable differences?

To prove irreconcilable differences, you typically need to demonstrate that there are fundamental disagreements between you and your spouse that cannot be resolved. This may include showing patterns of conflict, lack of communication, or differing values and goals. In Michigan, these differences must be significant enough to make it impossible for the marriage to continue. Documentation of issues, such as communication records or counseling notes, can support your case.

How do you prove marriage is irretrievably broken?

To prove that a marriage is irretrievably broken, you must show that the relationship has deteriorated to the point where reconciliation is not feasible. This can involve providing evidence of ongoing conflicts, emotional distance, or attempts at counseling that did not succeed. In Michigan, the court often looks for clear signs that both parties agree that the marriage cannot be saved.

Is it better to divorce or stay unhappy?

Deciding whether to divorce or stay in an unhappy marriage is a personal choice that depends on various factors, including emotional well-being, financial stability, and the potential for resolution. If the issues are severe and irreconcilable, divorce may be a healthier option. However, if there is a chance for improvement through counseling or communication, it might be worth exploring those avenues first.

What qualifies as irreconcilable differences?

Irreconcilable differences refer to significant and persistent disagreements between spouses that prevent a harmonious relationship. This can include issues like differing life goals, communication breakdowns, financial disputes, or emotional disconnect. In Michigan, these differences must be substantial enough to indicate that the marriage cannot be repaired.

Can you contest irreconcilable differences?

Yes, you can contest irreconcilable differences in a divorce proceeding. If you believe that the marriage can be saved or that the differences are not as severe as claimed, you can present evidence to support your position. This may include demonstrating efforts to resolve conflicts or showing that reconciliation is possible. However, the court ultimately decides based on the evidence presented.

How do you solve irreconcilable differences?

Resolving irreconcilable differences often involves open communication, counseling, and compromise. Couples can seek professional help through marriage counseling to address underlying issues and improve their relationship. If reconciliation is not possible, discussing terms of separation amicably can also help minimize conflict during the divorce process.