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NSW How to Retrieve Funds Provided to a Friend?

Discussion in 'Debt and Bankruptcy Law Forum' started by Mr.vinyl.record, 14 October 2016.

  1. Mr.vinyl.record

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    I separated from my partner around 5 years ago, but we agreed to continue living together as we had a mortgage and couldn't afford to buy a house separately. About 18 months ago we made a verbal agreement to reduce the mortgage to interest only in order to save money and sell our house to buy in another location closer to work.

    Following the sale of the house and signing a 12-month rental agreement while we searched for a new property, I was alerted to the fact that this friend has, in fact, spent all of the money I was giving her to save. I was providing her with $1360 per fortnight by Direct Deposit into her bank account.

    The mortgage payment for this 18-month period was, on average less than $1200 per month. I have calculated, after allowing for a generous amount to cover half of all other household expenses, that she should have been able to save almost $20,000 minimum just from my payments.

    She now refuses to even discuss the money and has taken the extreme action of applying for an AVO in an attempt to prevent me asking about it. I am confident of having this frivolous AVO dismissed at the court hearing, so am not concerned about it and have since vacated the property, leaving her with all furniture, including a large number of items purchased using funds redrawn from the mortgage (joint assets). I just want to make a clean break and get away.

    I was also willing to walk away from the $20,000, however, removing my name from the rental lease has proved challenging. I have just received communication that in order to do this there is a penalty of around $2,500. I also have evidence of paying a generous amount towards rent and expenses at the rental property up until I vacated.

    Do I have any grounds to either retrieve any of the 'savings' or at least argue that I have already provided sufficient funds to cover all further expenses relating to the rental property?

    Any help is greatly appreciated.
     
  2. Sophea

    Sophea Well-Known Member

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    In order to recover the monies, you would need to institute court proceedings and then be able to prove to the court that you had an agreement for what was to be done with the money and that she misappropriated your money. It can be difficult however where the money belongs to both of you and you had different ideas about what was to be done with it.

    You would need to be able to show that you were giving her your money which she was to apply to a specific purpose and she misappropriated that money.
     
  3. Mr.vinyl.record

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    Thank you for your reply.

    I expect if I was able to see her bank statement, it would show that I gave her enough to cover close to 100% of household expenses while her funds went on clothes, hair, tattoos and holidays.

    I have a police statement from her confirming we separated 5 years ago.

    As mentioned the agreement on funds disbursement was verbal only. I think it is reasonable to conclude that I would not be agreeing to completely support her, her child and her pets.

    Not sure if courts would see it this way.

    Any chance?

    Also to add, the detail for all bank transfers shown on both my and her statements was 'motgage' (I forgot the r and never corrected it)
     
  4. Sophea

    Sophea Well-Known Member

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    I still don't quite understand the nature of the payments, but if they were payments to her not mortgage payments you were giving her to pay for you, then I don't like your chances of going to the court and saying "I gifted her money, but she didn't do what I told her to do with it." Once the money is hers its hers.
     
  5. Mr.vinyl.record

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    Thank you again.

    So if I understand correctly, without a written agreement, all money I transferred to her bank is considered a gift regardless of the detail on the bank statements? I'm actually not interested in recouping the funds, I'm more hoping I have some grounds to defend against her taking legal action to get even more from me.

    In this event I'd be looking to request evidence to show how funds, I have provided to date are insufficient to cover bills she hasn't paid.

    I apologise if this is a little unclear, it is a bit complex.

    Thanks anyway.
     
  6. Sophea

    Sophea Well-Known Member

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    I'm not saying you wouldn't have a case, it would be up to the court to decide whether or not the evidence you can provide and your version of events indicate that there was some agreement as to what was to be done with the money and your ex breached that agreement.
     
  7. Mr.vinyl.record

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    Thank you very much for your assistance :)

    Much appreciated
     

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