NSW Family Law - Entitled to Give Back Parent's Portion of Property?

[Lito]

Hello forum members,

I just have a question with regards to the entitlement with a shared investment with my partner.

We have been marriage for 7 years now and have two kids. Unfortunately, things didn't work out well and we might be heading to a divorce.

During the time together, we purchased a house. However, my parent had given me a large chunk at the time as we needed a deposit for the purchase and none from the other side. Also, my contribution at that time was also significantly higher too.

So my family law questions are:

+ if we fall apart now, can that portion of my parent given to me be separate from our split, i.e., if we sell the house, can I ask for that that money to be paid back to my parent instead?

+ if both of us maintain separate bank accounts, do we need to show this information to the other?

Many thanks for your expert opinions.

 

[SamanthaJay]

Hello forum members,


During the time together, we purchased a house. However, my parent had given me a large chunk at the time as we needed a deposit for the purchase and none from the other side. Also, my contribution at that time was also significantly higher too.

So my family law questions are:

+ if we fall apart now, can that portion of my parent given to me be separate from our split, i.e., if we sell the house, can I ask for that that money to be paid back to my parent instead?

+ if both of us maintain separate bank accounts, do we need to show this information to the other?

Hi Lito

Based on my experience, I offer the following opinion

Was the portion your parent gave you documented as a loan? Or was it a gift at the time? Seven years ago my father 'lent' my ex and I a substantial amount of money after a natural disaster left our property with urgent repairs needing doing.

As my father was living in our second house on the property, he lent the money on the basis that this would cover his rent for the house for the foreseeable future at least. We expected to be reimbursed by insurance at some stage but at the time, insurance claims were taking a long period of time. We documented nothing apart from a notebook with the total amount and the weekly rent amount taken off it leaving a balance each week.

My father went into aged care approx 3 years later and there was still a large balance. Insurance ended up covering some of the repairs but at the time my father said 'we'll fix it up later' (the repayment of the loan to him). Meanwhile my ex and I paid off the property.

I left my ex and the family home early last year and we are now trying to reach a financial setlement.

I've been told by my solicitor and the registrar at the conciliation conference that that money will highly likely be considered as a gift to both of us should our case go to trial. This is based on the fact that there is no loan documentation.

Regarding the bank accounts, when you begin negotiations for a financial settlement, you will go through 'discovery' which is when each party will be required to disclose their financial interests. This will most likely entail both of you having to provide each other with all financial documents such as bank statements, share holdings, superannuation, tax returns etc etc.

 

[Lito]

Hi SamanthJay,

Thank you very much for sharing your experience on this matter. It is greatly appreciated.

While it is fairly clear from your reply that the money that my parent gifted to us will be divided equally, is there any possibility of future gift(s) from my parent to me be avoided sharing equally?

In other word, if I create a loan document to borrow my parent money then I won't have to share that money with the ex?

Once again, thank you very much for your opinions.