In Pennsylvania, a gift from one spouse to the other during the marriage is generally marital property. That means the anniversary bracelet, birthday earrings and travel necklace may be included in the marital estate even if your husband clearly intended them as gifts and you were the only person who wore them. Calling an item a “gift” does not automatically remove it from equitable distribution when the gift was between spouses.
An engagement ring, however, is treated differently. An engagement is usually given before the marriage and conditioned upon the marriage taking place. Once the marriage occurs, the condition is satisfied. Because the ring was acquired before marriage, it is generally treated as the recipient’s non-marital property. The analysis may differ, however, if the original ring was replaced or significantly upgraded during the marriage with marital funds.
Inherited jewelry from a family member, or received as a gift from someone other than your spouse, is generally non-marital property. Your grandmother’s sapphire ring would ordinarily be classified as non-marital property when its source can be established. Evidence of its source may include photographs, a will, an estate inventory, insurance records, appraisal documents or testimony from family members.
In a Pennsylvania divorce case, the law does not require every marital asset be sold or physically divided. One spouse may keep a particular piece of jewelry and the value assigned to it can be accounted for elsewhere in the overall distribution. It is important to know that purchase price is not the same as current value. An insurance appraisal may reflect replacement cost, which is not necessarily the same as fair market value for purposes of equitable distribution. If the value of a piece of jewerly is significant or disputed, a qualified appraiser should provide an appropriate valuation.
The bottom line is your spouse does not automatically reclaim jewelry merely because s/he bought it. The likely result depends on when each item was acquired, who gifted it, the source of the funds and whether you can document its history. You should always consult with an experienced Pennsylvania family law attorney before selling and/or returning jewelry to your spouse in a Pennsylvania divorce matter.