Property Division — Gifts And Loans From Parents
Sizable monetary gifts and loans flowing from parents to adult children are increasingly common. Complications and bitter disputes may arise if the child’s marriage breaks down.
At Nathens, Siegel LLP, our lawyers have a deep understanding of complex, contentious issues in separation and divorce. We can determine your rights and protect your financial best interests when dividing gifts and loans from parents.
Why Intergenerational Gifts And Loans Become Disputed
Ex-spouses and their parents may fight bitterly over the true nature of a large transfer of funds.
Both parties may consider the sum a gift during the marriage. Upon separation, the recipient or parents may suddenly claim that it was intended as a loan and must be repaid. If true, the amount would lower the recipient’s net family property — and thus, improve his or her financial position in the case.
In other situations, a gift was indeed a gift, but the recipient and parents feel that the ex-spouse is not entitled to a share.
Determining An Accurate Division Is Crucial
With gifts and loans sometimes valuing into the tens or even hundreds of thousands, it’s critical to establish whether the amounts are divisible or may be excluded from property division. We can help you gain clarity on key issues and questions, such as:
- Was the gift intended exclusively for only one party?
- Were the funds used for the benefit of the other party or both parties?
- Was the money used towards a matrimonial home?
- What evidence is required to prove that a gift was actually a loan?
- If a loan was involved, should the entire value of the debt be deducted?
- Do time limitations apply to claim a loan repayment?
Whatever your position in the case, our lawyers can advocate for you. We have helped hundreds of clients in the Greater Toronto Area, Ontario. We have the knowledge, skill and experience to dissect the facts, consult the latest cases, and help you pursue a fair outcome. Our goal is to ensure that you leave a marriage on the best footing possible.
Discuss Your Case With Our Lawyers — Reduced Rate Consultations
Call us to arrange a consultation with our lawyers. We can answer your questions and assess the strength of your case. Call (416) 222-6980 ext. 2900 or email us for an appointment at our North York or Mississauga location.