In-laws in Germany will be able to reclaim gifts made to their children's spouses if the couple's marriage ends in divorce, following a landmark court ruling.

The Federal Court of Justice ruled that a man given around €29,000 (U.S.$40,000) by his parents-in-law to bid for a house at auction should pay the cash back, after he and their daughter divorced and he got the house. Judges said that the “contractual basis” of such presents depended on the in-laws' children being able to enjoy the fruits of the gift. This basis no longer applied following a divorce.
The ruling is likely to lead to an increase in demands for sons and daughters-in-law to return gifts after a divorce, the court said.
“If the child benefits from the gift for a long period of time (for example if the couple lives together in a house donated by the in-laws), then only a part of the gift must be paid back,” the court said in its ruling.
“If the parents want to avoid this and make sure that only their own child benefits from the gift, then they should offer it only to that child,” the court said.
(Source: news.com.au)