One of the most common surprises in the division of assets after a divorce concerns gifts and inheritances. Many people assume that everything acquired during the marriage automatically forms part of the matrimonial estate. That is not the case – and not knowing this rule can be very costly.

What Forms Part of the Matrimonial Estate

From the moment of marriage, statutory matrimonial community of property arises between the spouses by operation of law. The matrimonial estate generally includes everything the spouses acquire during the marriage – salary received, income from gainful activity, income from both the matrimonial estate and personal assets, and funds accumulated in pension fund accounts.

Gifts and Inheritance – Personal Assets, Not Shared

Property acquired by inheritance, bequest or gift belongs to the personal assets of the spouse who received it – not to the matrimonial estate. This means that where one spouse received a flat, a car or money as a gift, those assets are their sole property and are not subject to division on divorce.

This rule applies regardless of when the gift or inheritance was received – before or during the marriage.

The Exception – the Donor’s or Testator’s Intention

The donor or testator may provide otherwise. Where the deed of gift or the will expressly states that the property is to form part of the spouses’ matrimonial estate, that is what will happen. It is therefore worth reading the deed of gift carefully when receiving a gift from parents.

A Gift to Both Spouses

Where the donor made a gift to both spouses jointly – without specifying that it should belong to only one of them – the gift forms part of the matrimonial estate. This frequently applies to gifts from parents made towards the purchase of a flat or house for the whole family.

Where the gift was expressly directed to one spouse, it belongs to their personal assets. In practice this is often disputed and requires analysis of the terms of the deed of gift or the circumstances in which it was made.

Ordinary Household Items – an Important Exception

This is where a significant trap lies. Ordinary household items serving both spouses – furniture, household appliances, electronics – form part of the matrimonial estate even where they were acquired by inheritance or gift. The exception is where the donor or testator expressly provided that they should belong to only one spouse.

This means that a washing machine or fridge inherited from a grandparent can become part of the matrimonial estate – if it is used by both spouses and the will contained no relevant reservation.

Compensation and Damages – Personal Assets

Property received as compensation for personal injury or health disorder, and damages for non-material harm, belong to the personal assets of the injured spouse. They are not subject to division on divorce.

An exception applies to an annuity payable to the injured spouse due to total or partial loss of earning capacity or increased needs – that annuity does form part of the matrimonial estate.

Employment Income – an Important Distinction

The entitlement to salary – the right to receive remuneration – is the personal asset of the earning spouse. However, salary that has actually been received and paid into an account already forms part of the matrimonial estate. This distinction is particularly relevant in enforcement proceedings against a spouse’s debts.

Substitution – What You Buy With Inherited Money

Property acquired in exchange for personal assets also forms part of the personal estate – not the matrimonial estate. Where one spouse inherited PLN 200,000 and used those funds to buy a flat, that flat is their personal asset.

Problems arise where funds from a gift or inheritance have been mixed with matrimonial funds – for example where an inheritance was paid into a joint account and the purchase of a property was financed from that same account. In such a case proving that the property came from personal assets can be very difficult. It is therefore worth keeping funds from gifts and inheritances in a separate bank account.

Contributions From Personal Assets to the Matrimonial Estate

Where funds from a gift or inheritance were spent on the matrimonial estate – for example on renovating the shared home or repaying a shared mortgage – the spouse may seek reimbursement of those contributions when the assets are divided.

An important limitation: reimbursement cannot be claimed for expenditure used to meet the family’s living needs – unless it increased the value of the assets at the time the matrimonial community came to an end. This means that inherited money spent on day-to-day family expenses is not reimbursable.

Unequal Shares in the Matrimonial Estate

As a general rule both spouses have equal shares in the matrimonial estate. For important reasons, however, either spouse may seek a determination of unequal shares – taking into account the degree to which each of them contributed to building the estate. In making that assessment, the personal effort invested in bringing up the children and managing the shared home is also taken into account.

Practical Points

Where you expect to receive a gift or inheritance, make sure the deed of gift or the will expressly states that it is to belong to your personal assets. Keep funds from gifts and inheritances in a separate bank account – this makes it easier to prove their origin later. Where you use personal assets for the benefit of the matrimonial estate, document this carefully so that you can seek reimbursement of the contributions when the assets are divided.

Do you need help with the division of assets or establishing what forms part of the matrimonial estate? Call: +48 531 335 713 or write to kancelaria@prawnikodrozwodu.pl

This article provides general legal information and does not replace individual legal advice in a specific case. Every family law matter requires analysis of the specific circumstances and documents. The law firm accepts no liability for actions taken on the basis of the information contained in this article. For legal advice tailored to your situation, please contact our law firm.

We invite you to contact the Family Law Practice: Adwokat Michalina Koligot, Adwokat Marta Krzyżanowicz, Adwokat Anna Konrady, Radca prawny Joanna Jędrzejewska ul. Mickiewicza 18a/3, 60-834 Poznań | tel. +48 531 335 713 | kancelaria@prawnikodrozwodu.pl | www.prawnikodrozwodu.pl