How does the court treat gifts?

Like inheritance, gifts can be tricky when dividing property after separation. The Family Court looks at when the gift was given, who it was intended for, and how it was used.

Gifts to one partner

If a gift was clearly given to one person (for example, jewellery from parents or a car from a friend), it is usually treated as that person’s contribution to the relationship. However, if the gift was used for family purposes, it may become part of the property pool.

Gifts to both partners

When a gift is made to the couple jointly—such as parents giving money for a deposit on a house—it is normally treated as a joint contribution. The value is shared, even if the money came from one side of the family.

Before, during, or after separation

• Before or early in the relationship: A gift is often recognised as part of the recipient’s initial contribution.

• During the relationship: If a gift is applied to family use, like buying a property, it usually counts as joint property.

• After separation: Gifts received after separation are generally not included in the property pool, but they may be considered when assessing each party’s financial position.

Example

Tom’s parents gave him $50,000 during his marriage, which was used as part of a home deposit. The court treated this as a contribution from Tom’s side of the family, but because the money went into a joint home, it still became part of the property pool to be divided fairly.