What’s an "unconditional gift"?
An unconditional gift is a gift that is given without any expectation of reciprocation or in expectation of anything in return. That is, there are no "conditions" on either the giving or the receiving of the gift.
For example, a birthday present is usually given because it is the recipient’s birthday, and not because the recipient will then become obligated to do something in exchange, nor will the giver now be entitled to expect something from the recipient.
A "conditional gift" is one that is done in anticipation of something or in reciprocation of something. Oddly enough, an engagement ring is an example of a "conditional gift"; that is, it was given on the condition of getting married. Another ring, not given as an engagement ring, but solely out of love for the recipient, is an "unconditional gift". Some men often asků"What if I gave my wife an engagement ring on her birthday"? Is it "conditional" or "unconditional"? Even though one could say it is a birthday gift as well, it certainly still carries the condition of getting married.
An "unconditional gift" typically remains as separate property. There are many instances an "unconditional gift" is classified as a mutual gift, because it benefits both the husband and wife. For example the husband give his wife a new car for her birthday. The new car is a gift, but he will also drive it from time to time and it will serve as an essential belonging for the proper functioning of the marriage or family. Therefore it quickly becomes a "conditional gift" , which is marital property.