Who keeps the gifts in a divorce settlement?

11 March 2026

When you are going through divorce proceedings, it can sometimes be complicated trying to divide your finances and this is even harder when valuable or sentimental gifts are involved.

Questions can arise about who keeps items such as jewellery, cars or family heirlooms and whether cash gifts are included in the financial settlement.

If you have a gift that you want to protect, you need to understand how the courts approach these situations.

How are gifts treated in a divorce?

In England and Wales, there is no automatic rule that determines whether gifts are included or excluded during a divorce.

The court will consider the circumstances of each case and decide what outcome is fair under Section 25 of the Matrimonial Causes Act 1973.

They will look at factors such as the value of the assets involved and where those assets originally came from.

Some of the most common gifts involved in divorce disputes include:

• Jewellery and watches
• Designer items
• Cars
• Expensive technology
• Cash gifts from parents or relatives
• Property contributions or deposits
• Family heirlooms or sentimental items

How are gifts between spouses treated in a divorce?

Gifts exchanged between each other during the marriage are usually treated as matrimonial assets.

For example, if one spouse bought the other an expensive watch or car, the item generally belongs to the recipient. However, its value may still be included in the overall financial pot.

If ownership is unclear, the court may look at evidence such as who paid for the item, who mainly used it and whether it was genuinely intended as a gift.

Are cash gifts from family members included in a divorce settlement?

Cash gifts from parents can be given to help married couples purchase a property or support them financially.

If the money was placed into a joint account or used for share purchases, such as furnishing a home or contributing to a house deposit, it is likely to be treated as a matrimonial asset.

However, if the money was kept in a separate account and clearly intended for one spouse only, it may be considered a non-matrimonial asset.

What are matrimonial and non-matrimonial assets?

You will often hear discussions over whether an asset is matrimonial or non-matrimonial during your divorce settlement.

Matrimonial assets are generally acquired during the marriage and are usually shared between spouses.

Non-matrimonial assets include items brought into the marriage or received individually, such as inheritance or personal gifts.

The court can still include non-matrimonial assets in a financial settlement if it is necessary to meet the financial needs of both parties.

Over time, assets can also become matrimonialised if they are mixed with joint finances.

How can you protect your gifts?

While it is not always possible to fully protect gifts during a divorce, there are early steps you can take to prevent disputes and clarify your rights.

This can include:

• Documenting the giver’s intention in writing, especially for large cash gifts.
• Keeping gifted money separate from joint accounts where possible.
• Avoiding using gifts for family expenses if they are intended to remain personal assets.
• Considering a prenuptial or postnuptial agreement, which can set out how certain assets should be treated in the event of a divorce.

Although these measures can help, the court will always prioritise fairness and the financial needs of both parties in a divorce settlement.

How can we support your divorce proceedings?

Divorce proceedings can be complex and we can help you understand how a court is likely to treat specific assets and advise you on the best way to protect your interests.

Our Family Law team can help draft a prenuptial agreement to reduce the risk of disputes in the future.

We can also work in conjunction with mediators to help you reach a fair agreement efficiently and avoid costly and stressful court proceedings.

If you need advice on how your gifts are treated in your divorce proceedings, get in touch with our team.