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Does a Gift To A Spouse Become Separate Property?

Suppose Wilde West gives his wife Mae a big, expensive diamond. In the divorce, Wilde claims that the diamond is marital property, to be shared. Mae claims it is her separate property, and Wilde should get none of it.

Who wins this argument?

It depends on what state you're in.

The states are roughly evenly split, some saying that the diamond remains "marital," and they split it, and some saying that Mae can keep it all.

Some states further add that Mae may keep the diamond only if it was Wilde's intent at the time to make a gift, but the facts are usually such that the courts in those states find that is was a gift.

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