NSW Loan With Ex Partner

[Honest 1]

Hi,
In a bid to sever ties with my ex partner 2 1/2 years ago I transferred $2,500 to her bank account and emailed her a summary of what I owed her, including details of partial repayments to 2 informal loans. She transferred the money back 3 days later and emailed saying there was no agreement.
There was no financial settlement as part of Family Law proceedings.
My Ex has sent me a letter of demand, I suspect she may make a claim with the small claims court, regarding the loans and other items.
My question is, how does the law view the transfer of funds I made? Does it constitute a repayment? How would it view my ex returning the funds?

 

[JazKaz]

What was the intention behind sending $2,500?
In other words was it a part of a loan you Claim to owe?

When contracts are involved, court look into 4 elements to view whether it is valid and enforcable.
1 agreement- a combination of offer and acceptance. For instance, if she offered to loan u funds for items in return for something that is an offer. Acceptance would be u receiving the funds and using it.

2 consideration- the exchange of something between both parties that objectively proves that the matteris to be taken seriously

3 Intention - the willingness of parties to be legally bound by terms. There is apresumption under intent that may work in your favour. The presumption that domestic relationships cannot form contracts. Courts have followed this general rule, however it is not a certainty such as in a case about a promise to pay someone to sustain their living standards whilst the other partytravells to another country for work purposes.

I however believe your situation may be different due to the type of transaction and ownership principles. If you were living as a de facto couple, and whatever was purchased was on her name... these factors may change the outcome.

My advice is to seek actual legal advice.

 

[Tim W]

This all boils down to one thing - the one number.
What is the amount - the one number - that makes it all go away?

 

[Honest 1]

What was the intention behind sending $2,500?
In other words was it a part of a loan you Claim to owe?

When contracts are involved, court look into 4 elements to view whether it is valid and enforcable.
1 agreement- a combination of offer and acceptance. For instance, if she offered to loan u funds for items in return for something that is an offer. Acceptance would be u receiving the funds and using it.

2 consideration- the exchange of something between both parties that objectively proves that the matteris to be taken seriously

3 Intention - the willingness of parties to be legally bound by terms. There is apresumption under intent that may work in your favour. The presumption that domestic relationships cannot form contracts. Courts have followed this general rule, however it is not a certainty such as in a case about a promise to pay someone to sustain their living standards whilst the other partytravells to another country for work purposes.

I however believe your situation may be different due to the type of transaction and ownership principles. If you were living as a de facto couple, and whatever was purchased was on her name... these factors may change the outcome.

My advice is to seek actual legal advice.

Thanks JazKaz for your reply and info.
The $2500 was for full payment of 1) an agreed to loan, 2) a loan that was not specified as such at the outset and 3) repairs to her car that I damaged. She is asking for $6500 including furniture and plants that she didn't collect and other spurious things. Some of it goes back 4 1/2 years. She could've pursued some of it then or engaged in negotiations 2 1/2 years ago. I believe some of her motive is to try to keep engaging me - the more I have disengaged in other areas, the harder she tries to engage, often using our 5 yo. to do so.

I have since gotten legal advice from the Law Access Line. Basically furniture etc., should've been dealt with as part of Family Law proceedings and it is well over 2 years since we separated (De Facto) so unlikely action would be taken on those things. But loans and damage to vehicle would likely come under the small claims court. I am now prepared and in a position to offer a similar amount again to have the matter finalised and to be ethical and in integrity about what I feel I do actually owe her - even if she sent the money back. I will probably do so in the next week or so. If she doesn't accept it, I'm prepared to let her try and prove her claims via court.

Thanks again.

 

[Honest 1]

This all boils down to one thing - the one number.
What is the amount - the one number - that makes it all go away?

Thanks for your reply Tim W.

What's the number?
For her $6500 (I don't have). She has a long Mental Health history and is not very compromising when negotiating. It's pretty much her way or not at all.

I take your point. I may increase my offer a little to 'make it go away' although I suspect she won't accept anything that is not close to what she wants. In which case, as I replied above to JazKaz, let her prove her claims to the court if she is capable. I'm not looking for a fight, but I have given in to her many, many times in the past and as well as not wanting to for my own sense of worth, now I simply cannot afford anymore than $2500 - 3000.

Thanks again.

 

[Atticus]

My Ex has sent me a letter of demand, I suspect she may make a claim with the small claims court, regarding the loans and other items.

Were the loans & items taken out/purchased during the relationship? ..... If so, the the small claims court will refuse to hear it. Not their jurisdiction. Family law (divsion of assets) is the applicable jurisdiction

In a bid to sever ties with my ex partner 2 1/2 years ago

Do you mean you separated 2.5 years ago?..... were you married or de facto? .... if married are you divorced?... have you been divorced for 12 mths or longer?... If so she is out of luck. There is a 12 month time limitation after divorce to apply to court for property division...

If you were de facto, then there is a 2 year time limit after final separation .... In both cases, after the time limit, leave of court is required to apply for settlement... Depending on circumstances, she may well not succeed in being granted that leave

 

[Honest 1]

Were the loans & items taken out/purchased during the relationship? ..... If so, the the small claims court will refuse to hear it. Not their jurisdiction. Family law (divsion of assets) is the applicable jurisdiction

Do you mean you separated 2.5 years ago?..... were you married or de facto? .... if married are you divorced?... have you been divorced for 12 mths or longer?... If so she is out of luck. There is a 12 month time limitation after divorce to apply to court for property division...

If you were de facto, then there is a 2 year time limit after final separation .... In both cases, after the time limit, leave of court is required to apply for settlement... Depending on circumstances, she may well not succeed in being granted that leave

Hi Atticus,
Yes, loans were whilst in a de facto relationship. It ended 3 years ago.
I was told by the Law Access line that she would need to seek leave of the Family Law Court due to the time after separation, but for that amount ($6,500 she is claiming), it wouldn't go to Family Law. But, she could make a claim in the small claims court and the onus would be on her to prove the loans were loans etc.

Thanks for your input.

 

[Atticus]

In response to the letter of demand I would be inclined to just offer the original $2,500 (if that is an honest calculation of what you owe, & you are still willing).... If she refuses & takes it to civil court there will be further opportunity to come to an agreement before a magistrate hears the case...

Civil court claims are decided on the balance of probability principal, that's IF the magistrate accepts even hearing it as strictly speaking, it's not that courts jurisdiction.... but yes, she would then have to convince the mag on BOP that it was a loan/s, & that the amount she is seeking is true ...