Real property (real estate) or personal property (money, jewelry, art, stocks, bonds, etc.) given by one spouse to the other spouse during marriage is generally presumed to be a gift, and is the receiving spouse’s separate property. Such a gift includes all income and property from the gifted property—such as stock splits resulting in new shares of stock, and stock dividends paid. Because such transfers of property are separate property owned by the receiving spouse, the spouse who gave or gifted the property during the marriage generally cannot recover it or seek a credit or offset for it against the marital or community property.

But laws on spousal gifts during marriage vary from state to state, and especially with gifts that are substantial in value in relation to the income and assets of the spouses. And in some states the character of property as (1) separate property or (2) community or marital property can be permanently changed if there was a transmutation of the property by written agreement of the parties—an agreement in which the property was transmuted from community property to separate property, for example. A transmutation of real property may have to be recorded in the county records to be effective.

Laws regarding the characterization of property given by one spouse to the other spouse during marriage, and any transmutation of the property, are generally located in a state’s statutes, and often in the family or domestic relations code.

In Washington State, the general presumption is that property or gifts given by one spouse to the other during the marriage are considered separate property of the receiving spouse. This includes any income or additional property derived from the gifted property, such as stock dividends or splits. However, the characterization of property as separate or community can be altered through a process called transmutation, which requires a written agreement between the parties. For real property, this agreement may need to be recorded in county records to be effective. Washington is a community property state, meaning that most property acquired during the marriage is owned jointly by both spouses. However, gifts and inheritances received by one spouse, as well as property owned prior to the marriage, are typically considered separate property. It's important to note that the division of property during a divorce can be complex, and the specific circumstances of the gift and the overall financial situation of the spouses can influence how property is categorized and divided. An attorney can provide guidance on how these principles apply to individual situations.