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Christmas and other gifts on divorce:

According to the Telegraph newspaper http://www.telegraph.co.uk/topics/christmas/8933225/The-price-of-Christmas-112.50-per-child.html the average budget for Christmas 2011 presents for each child is £112.50.  It appears that many parents will spend less on their spouses, other family members and friends in favour of their children.

Agreeing the Christmas shopping budget in some families can provoke serious friction and may even be a factor in the breakdown of some marriages.  In such cases whilst children's gifts will not ordinarily be taken into account when trying to divide matrimonial property, gifts between spouses during the marriage would be regarded as matrimonial assets.

Gifts from third parties to either spouse during the marriage (whether at Christmas or any other time) are normally exempt from the calculation of matrimonial property.  Some gifts will be "converted" into matrimonial property, however, when they are sold and the proceeds are spent on new assets. 

Where presents from third parties have been converted into matrimonial property or where there have been gifts of assets between the spouses during the marriage, a valuation may be required on separation.  For advice on all aspects of separation and divorce, please contact our Family Law Team.

Posted by

Lydia McLachlan

Lydia McLachlan

Senior Solicitor

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