Its wedding season again and so many families are celebrating the joys of a couple starting on their own lives together. Wedding halls are being booked, caterers confirmed, outfits selected, and expensive jewellery being bought. It’s hoped that the couple go on to enjoy a long and fruitful marriage with the security of relying on assets such as the family gold should it ever be needed.
Unfortunately, in some cases, marriages do not stand the test of time and very soon issues around the joint wealth of the couple come to the fore.
As divorce specialists, we’re often asked by clients what happens to their gold jewellery on divorce or separation. The answer may depend on a tiny piece of paper…your receipt! Many cases involving gold and its ownership fail due to the lack of documentary evidence. So, if you’re gifting or purchasing gold for a wedding or during the marriage, make sure you keep your receipt.
For many families, jewellery represents heritage, culture and financial independence. In South Asian families, the gifting of gold jewellery to a woman from her family or in-laws on marriage is a long-standing practice. As a South Asian woman, our jumka, bangles, or earrings are more than pieces of jewellery..they remind of us of our mothers and grandmothers before us. Equally, many families on the groom’s side gift jewellery which they consider heirloom pieces and want returned to their family.
On divorce, your gold jewellery will become part of the ‘matrimonial pot’. When a couple divorces, their assets such as property, money or jewellery are divided during the financial settlement. There are a few simple steps you can take to avoid disputes about jewellery on divorce.
- Speak Up. As early as possible, tell your solicitor about any high value items of jewellery; you may want the item returned because it was a gift or have significant sentimental value; or you may want it added to the matrimonial pot because it was intended for both of you;
- Keep Your Receipts. Many cases involving gold and its ownership fail due to a lack of documentary evidence. As someone of South Asian heritage, I’m surprised by the number of families gifting their children gold jewellery without keeping any receipts. Clients often remember these expensive gifts much later in a case. Where possible, keep some evidence of your purchase. Make a list of the items you purchases. Take photographs. Keep the receipt. A receipt can make a big difference. It can prove when the jewellery was purchased, the cost of the item and ideally, the weight of the gold. If you have no receipts, get a valuation of the item.
- Record The Gift. If you’re giving a gift, make a record of the intention. This can be on a piece of paper or a witnessed document. Is the item a personal gift to your daughter/son? Is it part of the dowry? Is it a gift to the couple in place of property or money to help them set up their new life? If the item has a special value, write down they are heirloom items and should be returned to the family on divorce or separation.
These three simple steps which can protect you and help to avoid disputes if the marriage fails. If in doubt get in touch with SKB Law who would be happy to offer further assistance. www.skblawfirm.co.uk
