Blog Post

Here’s Your Gift… But I Might Want It Back in the Divorce

Colleen M. Breems & Nayeli A. Cadenas • January 9, 2023
A woman in a gold dress is holding a gift box in front of a christmas tree.


Holidays come and go and many gifts are exchanged between loved ones throughout the years. However, there may be the question of what happens to those gifts when a couple exchanges these gifts while still married, and then they later divorce.

 

Courts typically divide property in dissolution proceedings in two ways: marital and non-marital property. Under the Illinois Marriage and Dissolution of Marriage Act (IMDMA), marital property is defined as “all property, including debts and other obligations, acquired by either spouse subsequent to the marriage.” 750 ILCS 5/503(a). Non-marital property, in short, is property that was acquired before the marriage.

 

It appears that the division of property in a divorce should be simple. However, what happens to the gifts spouses give to each other during the marriage? Under the IMDMA, one cannot be reimbursed for a gift made during the marriage. When one spouse claims that a certain piece of property was a gift, they must demonstrate that it is so by clear, convincing, and unmistakable evidence. In re Free, 2015 IL App. (1st) 150258-U. A spouse claiming an item of property is non-marital because it was a gift, must also show a “donative intent [of the other spouse] to pass title and relinquish all present and future dominion over the property.” Id. at P82.



For example, if a couple were to exchange gifts this year, and then they were unfortunately to divorce later on, the gifts given generally would be considered non-marital property, and generally therefore would be awarded to the recipient, free and clear of any interest of the giver.


Items such as wedding rings are property that is easily categorized as non-marital property since the rings are an exchange between the spouses. Engagement rings, on the other hand, are gifts given in contemplation of marriage, which means that the ring does not become a true gift until the marriage occurs.


Attempting to navigate this difficult distinction between marital and non-marital property, especially when it comes to gifts given between spouses can be overwhelming. If you are in need of assistance, please reach out to the attorneys at Lavelle Law to assist you with your case.


Should you have additional questions regarding the subject matter hereinabove, please call us at 312-322-7555 or email Attorney Colleen M. Breems at cbreems@lavellelaw.com to schedule your free and confidential one-hour consultation to discuss your options. 

More News & Resources

Lavelle Law News and Events

LATEST UPDATE on the Corporate Transparency Act and New Deadline for Filing BOIR
By Frank J. Portera February 20, 2025
This article will serve as another update to the ongoing Corporate Transparency Act developments. As of February 17, 2025, a federal judge in the Eastern District of Texas lifted the injunction it had ordered on January 7, 2025, in Smith v. U.S. Department of the Treasury, 6:24-cv-00336 (E.D. Tex.), allowing the federal government to once again enforce the Corporate Transparency Act and its Beneficial Ownership Information Report requirements.
A Step-by-Step Guide to Bringing a Lawsuit in Illinois
By Sarah J. Reusché February 14, 2025
This article is the second in our Litigation 101 series. It focuses on the flip side: how to sue someone else. Suing someone is a serious decision that requires careful thought and preparation. Before pursuing legal action, it’s crucial to reflect on the issue and understand the steps involved in bringing a lawsuit. This article outlines the basics to help you approach the process with confidence and make informed decisions.
Updates Regarding the Corporate Transparency Act Hold: Key Implications for Businesses
By Frank J. Portera February 13, 2025
On December 11, 2024, we published an article titled “Corporate Transparency Act on Hold: Key Implications for Businesses,” which addressed the nationwide injunction impacting the enforcement of the Corporate Transparency Act and its Beneficial Ownership Information Reporting rule. Since then, there have been a few significant legal developments that businesses should monitor closely. While the Financial Crimes Enforcement Network is currently prohibited from enforcing BOIR requirements, ongoing litigation, and the related appeals may alter this status. Below, we provide a timeline of key events and insights into what business owners should anticipate moving forward.
IRS Special Payments Sent to 1 Million Taxpayers Who Did Not Claim 2021 Recovery Rebate Credit
By Timothy M. Hughes February 10, 2025
The Internal Revenue Service is issuing automatic payments to eligible people who did not claim a Recovery Rebate Credit on their 2021 tax returns. The payments are in follow up to an IRS announcement last month of the intent to take this special step. The IRS took this step after reviewing internal data showing many eligible taxpayers who filed a return but did not claim the credit. The Recovery Rebate Credit is a refundable credit for individuals who did not receive one or more Economic Impact Payments (“EIP”), also known as stimulus payments.
SCOTUS Resolves Circuit Split on FLSA Exemption Standard
By Steven A. Migala February 5, 2025
The Fair Labor Standards Act (FLSA) establishes federal minimum wage and overtime pay requirements, with exemptions for employees in bona fide executive, administrative, professional, computer or outside sales roles. 29 U.S.C. § 213. Employees classified as "outside sales" must primarily engage in making sales or obtaining contracts for services or the use of facilities, and they must conduct their work primarily away from their employer’s place of business. 29 C.F.R. § 541.500.
Illinois Biometric Information Privacy Act (BIPA)
By Sarah J. Reusché January 23, 2025
Amendments to BIPA SB 2929 became effective on August 2, 2024. Codified as 740 ILCS 14/10 and 14/20, this Act introduced two pivotal changes to BIPA that dealers should be aware of: • Limiting Per-Scan Damages: The amendments clarify that a single violation under BIPA accrues per type of violation, rather than per scan. This significantly reduces the financial exposure for dealerships. • Electronic Consent: The amendments formalize electronic signatures as a valid means of securing biometric consent, streamlining compliance processes for businesses.
IRS National Taxpayer Advocate Releases Annual Report to Congress. And in an Unrelated Matter DOJ Ta
By Timothy M. Hughes January 10, 2025
The National Taxpayer Advocate recently released her annual report to Congress. A few highlights from the report are summarized in this article.
Nearly 300 New Illinois Laws are going into effect in 2025.
By Lavelle Law January 8, 2025
Nearly 300 New Illinois Laws are going into effect in 2025. Listed below are some that may have a significant impact on you or your business.
Happy New Year and Cheers to New Adventures in 2025!
By Lavelle Law December 31, 2024
As we say farewell to 2024, we’re excited to look back on the unforgettable moments from our Koozie Challenge! From the frozen wonders of Antarctica to the excitement of the Paris Olympics, and countless incredible destinations in between, the Lavelle Law koozie truly went the distance this year! A big thank you to our clients, staff, family, and friends who took part in the fun. Here’s to even more adventures in 2025! Happy New Year from Lavelle Law!
Lavelle Law concludes the 2024 annual food drive.
By Lavelle Law December 30, 2024
Schaumburg-based Lavelle Law wrapped its annual food drive benefiting the Schaumburg Township Food Pantry. During the month of October, Lavelle Law set up collection boxes around Schaumburg and the surrounding area, where residents and workers could drop off nonperishable food items, paper goods, personal care items, baby food and diapers. Participants could also make cash donations online.
More Posts
Share by: