Are gifts included in property settlements in Australia?

Usually, yes — but the “how” depends on timing, intention, and what happened to the gift once it landed in your life.

Someone’s parents hand over $30k to help with a deposit. A grandparent gives jewellery “just for you”. A mate transfers money after separation because things are tight. Or there’s a wedding gift that quietly turns into a new lounge, a holiday, or a debt paid off.

And then the relationship ends.

That’s when the gift suddenly stops feeling generous and starts feeling… contested. Understandably. It’s emotional, and it’s money, and family members get involved, and everyone’s got a story about what was “meant” to happen.

Thing is, Australian property settlements aren’t really about what feels fair in the pub. They’re about what’s in the property pool, what each person contributed, and what future needs look like. Gifts can end up in the mix in a few different ways.

So here’s the honest answer: yeah, gifts can be taken into account… but it’s rarely as neat as people want. Sometimes it helps your position. Sometimes it doesn’t. Sometimes it just becomes another thing everyone argues about at 10pm in a text thread.

First, a quick myth-buster: “It was a gift to me, so it’s mine.”

Maybe. Sometimes. But if that gift got poured into the relationship—deposit money, renovations, paying off the card, school fees—then it’s usually not sitting there in a tidy little box labelled mine anymore. It’s been used. It’s changed the overall finances.

And no, that doesn’t mean every gift gets chopped down the middle 50/50. That’s not how it works. It’s more about how it affected the relationship’s money story.

How gifts usually show up in a property settlement (without getting too academic)

Gifts can affect a property settlement in a few main ways:

1. As an asset in the pool

If the gift still exists in some form (cash, shares, a car, jewellery, money sitting in an offset), it may be counted as part of the pool.

2. As a contribution

If the gift was used to buy or improve something (often the family home), it’s commonly treated as a contribution—usually on behalf of the person whose family gave it, unless there’s evidence it was meant for both.

3. As part of “future needs” thinking

This one surprises people. A gift received after separation might not be “in the pool”, but it can still be relevant when looking at who has what support going forward—depending on timing and context.

You’d think it would be simpler. But that’s the shape of it.

The three questions that tend to decide how a gift is treated

1) Who was it meant to benefit?

Was it clearly for one person? Or was it for the couple?

Wedding gifts are the easy example—usually for both. A parent’s transfer “for the house deposit” can be more complicated. Sometimes it’s for the couple. Sometimes it’s for their child, but practically used by both.

This is where intention matters, and evidence matters more than everyone’s memory.

2) When was it received?

Timing changes the conversation:

• During the relationship: more likely to be dealt with as part of the overall property settlement process.
• After separation: often treated differently. Not always excluded, but it’s harder to argue it should be shared as property of the relationship.

3) What happened to it after it was received?

This is the “mixing” problem.

If the gift was kept separate—separate account, separate title, never used for joint purposes—it’s easier to argue it should be treated differently.

If it was poured straight into joint life—deposit, renovations, school fees, mortgage payments—then it’s usually harder to pull it back out later and say “that was mine only”.

The classic scenario: the family gift used for the home

This is the one that causes the most arguments, because it’s often big money and big emotion.

Example: a parent gifts $50k, and it goes straight into the deposit for the home both parties live in. Later, separation happens, and one person says: “That was my parents’ money. It should come back to me.”

Courts have treated gifts used for joint assets as relevant to the pool and/or contributions analysis. There are also cases where the court has said a parental contribution is generally treated as a contribution on behalf of their child unless there’s evidence it was intended to benefit both spouses. That nuance matters.

And yes—family members sometimes feel betrayed. But the legal question isn’t “who feels wronged”. It’s “what was it used for, and how should it be accounted for in a just and equitable outcome?”

Gifts received after separation: usually separate… but not invisible

Post-separation gifts are often treated as separate from the relationship property pool.

But wait, there’s more to it…

If a post-separation gift is used to pay off a joint debt, or it’s clearly part of the practical reality of supporting children, or it changes a person’s financial position significantly, it can still become relevant in the overall assessment.

Not always. Not automatically. Just… not invisible.

Gifts kept separate: possible, but prove it

If a gift was genuinely intended for one person and was kept separate, it may be treated differently.

But there’s a catch: it usually needs proof.

Not “a feeling” proof. Documents proof.

• bank statements showing where it went
• records showing it wasn’t mixed into joint accounts
• proof it wasn’t used for family expenses
• any written note or correspondence from the donor about intention (helpful, not essential)

A lot of people don’t keep these records because—fair enough—no one receives a wedding gift thinking, “Better keep this for the Family Court”.

But that’s the reality: documentation makes arguments easier. Lack of documentation makes them harder.

What about inheritances and personal injury-type payments?

These get talked about like they’re a totally different species.

Sometimes they are treated differently depending on timing and circumstances—especially if received late in the relationship or close to separation, or if the payment is clearly tied to compensating one person’s specific loss.

But they’re still part of the broader property settlement analysis. There isn’t a universal “inheritance is always excluded” rule. Same for injury-related amounts.

It’s case-by-case. It’s very fact-driven.

So what does this mean for you?

If gifts are part of your separation story, the practical stuff is pretty simple (even if the emotions aren’t):

• Gifts can matter in a settlement, even if they were “to one person”.
• Timing matters. What you did with the gift matters even more.
• If it went into the family home or paid day-to-day family costs, it’s often hard to later pull it out and quarantine it like it never touched the relationship.
• If it was kept separate, the paper trail is what makes that argument work (or not).

And if you’re trying to sort it out without the families turning it into a full-blown feud, a Mediator can help keep it practical—what’s agreed, what’s disputed, and what evidence actually exists, rather than everyone re-litigating the past at 100 decibels.

FAQ: questions people actually ask

Are gifts automatically split in a property settlement?

No. There’s no automatic rule that every gift gets split. Gifts may be included in the pool or treated as contributions depending on the facts.

If the gift was “for me”, can the other person claim part of it?

Sometimes. If it was used for joint purposes (like a home deposit, renovations, joint debts), it can still affect the overall settlement.

Does it matter if the gift was in a separate bank account?

Yes, it can help—especially if it stayed separate and wasn’t used for joint expenses. Documentation matters.

What if the gift was received after separation?

Often treated differently and commonly not included in the divisible pool, but it may still be relevant depending on what it was used for and the overall circumstances.

What documents should be kept to prove a gift was separate?

The goal is to be able to point to something solid, not just a conversation from three years ago. Helpful documents include:

• bank statements showing the deposit/transfer
• transfer/title documents (if it’s a car, property, shares, etc.)
• any written note/email/text from the donor about what it was for
• receipts or valuations for valuables (jewellery, watches, etc.)
• records showing how the gift was used (or that it wasn’t used) during the relationship

Neutral next step

If gifts are part of your separation story, get the timeline clear (when received, where it went, what it was used for) and gather the records early. Then get advice on how it’s likely to be treated before making big decisions or big accusations.

Legal disclaimer

This article is general information only and does not constitute legal advice. It does not take into account individual circumstances. For advice about your situation, obtain advice from a qualified Australian lawyer.