After marriage, Larry joined Sharon in the home she had owned before she married him seven years ago. The down payment was made from a gift to Sharon from her grandparents. They are now divorcing, and plan on selling the house. Sharon wants the larger portion of profits from the sale to cover the down payment her grandparents gave to her. Is she entitled to reimbursement for the down payment?
a. Yes, because all gifts given after marriage are automatically separate property.
b. Yes, if we can trace it back to the initial gift made to her prior to marriage.
c. No, because Larry said he believed it was a wedding gift to both of them.
d. No, because once married, all separate property automatically transmutes into marital property.
b
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