Here's the deal. My fiance and I bought a house off a family member. During the transaction my family member gave us a "gift of equity". Since then my fiance were married and now are getting a divorce. My question is the "gift of equity" is now coming up in the divorce. I was told my our selling real estate agent this gift can only be run through bloodline and technically I should be entitled to it before any split of the equity... Does this make sense?

You have actually answered your own question - "gave us a gift of equity".
The gift was to both, making it matrimonial property and therefore subject to division between you.

Even if the gift had been made to you alone, once you placed title into both names (I am assuming you did this), the presumption becomes that it is joint matrimonial property. Either way - subject to division.

Steve @ www.buyingahouseandsavingmoney.com

But from what and how things are being divided now what was mine before marriage continues to be mine...aka 401k and other monies and the same with her? So I sort of assumed this might be the case as well?

But from what and how things are being divided now what was mine before marriage continues to be mine...aka 401k and other monies and the same with her? So I sort of assumed this might be the case as well?

This wasn't yours alone, this was yours together.

These thing were designed without divorce in mind. It used to not be the problem it is now.

The usual way property is divided depends on when it was acquired:

- Property acquired before the marriage belongs to the person who acquired it.
- Property acquired after the marriage is divided equally.