In 2005/2006 my parents gave us a total of $80k, half to my wife and half to me. We invested most of the money in 2007/8 in the house: new patio, parking area, re-did bathrooms, kitchen cabinets and counter tops, and so forth. Now we are divorcing, and she wants the house. Our biggest issue may be my small business, of which I am a part-owner. I am talking about the whole argument of how much the value of my ownership grew while we were a marital team, and her wanting half. Wife has nothing to do with my business, and the business has nothing to do with the house. But wouldn’t I have a responding argument that we jointly and recently invested these gifted funds which directly increased home equity, and I want my half of the growth back?
The money you received as a gift was a joint gift and used for a martial purpose. Any increase in the value of the home is martial and subject to distribution, as is the value of the business.