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gift from parents

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scarlet30

Junior Member
Hi all,

What is the name of your state (only U.S. law)? NY
My parents are planning to give me money for investment and buying a place. They live overseas.

My husband and I have been going through rough patch on and off.
1) In case of divorce can he claim half of this amount?
2) Is there any way I can protect myself? for example, if my parents write a letter that this is a gift to me.

I have no problem splitting what we both have worked for but my parents money is what they worked for all their lives.

TIA!
WR
 


ShyCat

Senior Member
Gifts and inheritances are not considered marital property as long as they are kept separate and not commingled with marital property. If you invest the gifted money in property that is held in both names, you have comminged it with marital property. If the gifted money is invested in property that is titled solely in your name, and no marital funds are used to maintain or improve that investment property, then no commingling has occurred and the investment property remains your separate property.
 

nextwife

Senior Member
Your parents could take a mortgage against the the property you are buying. If they wish to someday forgive it, they have that option, but, until then it is a lien on the real estate and a debt against the joint property.
 

xylene

Senior Member
Hi all,

What is the name of your state (only U.S. law)? NY
My parents are planning to give me money for investment and buying a place. They live overseas.

My husband and I have been going through rough patch on and off.
1) In case of divorce can he claim half of this amount?
2) Is there any way I can protect myself? for example, if my parents write a letter that this is a gift to me.

I have no problem splitting what we both have worked for but my parents money is what they worked for all their lives.

TIA!
WR
You could refuse the gift.

Also if you are investing money for your parents or they are to have an equity interest in the house (ie when you sell the get money) they are not giving you a gift.
 

mistoffolees

Senior Member
Gifts and inheritances are not considered marital property as long as they are kept separate and not commingled with marital property. If you invest the gifted money in property that is held in both names, you have comminged it with marital property. If the gifted money is invested in property that is titled solely in your name, and no marital funds are used to maintain or improve that investment property, then no commingling has occurred and the investment property remains your separate property.
Or, to be completely safe, put the money into a CD in your own name and sit on it until you decide what to do about your marriage.
 
One problem with contributing non marital assets for a down payment on a house is that you usually end up splitting any equity (whether it's from paying down the principal OR appreciation) that you build up from that point on if you make mortgage payments out of marital income. Under normal circumstances all the appreciation of a non marital asset is non marital as long as no marital effort was put into it. If you don't like the previous posters suggestion (parents taking out the mortgage)...then I suggest you take the gift from your parents, put it into a separate account, figure your taxes with and without the income it produces...and pay the extra taxes out of that account. It's a little more work...but it's all yours. Then use any other marital assets you have for your down payment on the house.
 
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nextwife

Senior Member
One problem with contributing non marital assets for a down payment on a house is that you usually end up splitting any equity (whether it's from paying down the principal OR appreciation) that you build up from that point on if you make mortgage payments out of marital income. Under normal circumstances all the appreciation of a non marital asset is non marital as long as no marital effort was put into it. If you don't like the previous posters suggestion (parents taking out the mortgage)...then I suggest you take the gift from your parents, put it into a separate account, figure your taxes with and without the income it produces...and pay the extra taxes out of that account. It's a little more work...but it's all yours. Then use any other marital assets you have for your down payment on the house.
However, if the money means getting a house vs NOT getting a house, half of any appreciation on the house is perhaps not as big an issue. There is an intangible benefit, a quality of life, that living in one's own home provides. All is not merely numbers in these matters.

One consideration: real estate should NOT be viewed as a SHORT TERM investment. It is really intended to be held long term. So, if your relationship is uncertain, you may want to hold off on buying RE together.
 
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