To get on the property ladder, couples are often having to rely on gifts from parents. However, should the couple subsequently divorce, this can result in unintended consequences.
The general position is that, unless at the time the gift is ‘protected’ in some way, in the event of divorce the money involved is likely to be considered as part of the marital assets to be divided between the parties.
However, a gift can be protected either by documenting it as a loan (carrying interest and with a repayment date and other features of a loan), or possibly by the parties entering into a pre-nuptial agreement.
The cost of contested court proceedings at the time of divorce can be very expensive and, in comparison to the cost of court proceedings, the cost of preparing a loan agreement or a pre-nup at the outset is nominal.
We are a team of 5 experienced lawyers but, what makes us different to a firm of solicitors, is that we are acting as divorce consultants. We help people navigate the legal maze and stop them making expensive mistakes. We use our experience of the divorce process to find solutions to lower the temperature and save money.
If the above resonates or you know someone who may benefit from speaking to us, please do contact me. We don’t charge for an initial consultation.