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When is a 'loan' a loan

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Merlin View Drop Down
Newbie
Newbie


Joined: 26/May/2017
Location: Australia
Posts: 4
  Quote Merlin Quote  Post ReplyReply Direct Link To This Post Topic: When is a 'loan' a loan
    Posted: 26/August/2017 at 15:26
Four years ago I co-signed a legally binding document with my former wife and her daughter so that our property would be left to my wife's family should she predecease me. The lawyer came up with the idea to create some form of caveat in the form of a fictitious loan agreement of a 'loan' to be made by my wife's daughter which is now shown as a second mortgage on the Title Deeds. To my knowledge a loan was never made and the daughter wasn't in a financial position to make such a loan anyway. The lawyer did not explain to me the consequences of such a document should our future circumstances change.

They have changed and now that our marriage has ended the daughter (and my wife) are demanding the payment of the so-called loan, plus 15% interest, be redeemed on the sale of the property, which incidentally was owned solely by me before the marriage. I can prove that no such loan, or part thereof, was ever made to me. However, my wife did borrow a similar amount of money (or so she says) from her son to make renovations she wanted as well as buying land in her name.

My question is, although the son is not a signatory to the Agreement or is even unaware that it exists, can the daughter make a claim?

citizen-joe View Drop Down
Senior Member
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Joined: 09/October/2005
Location: Australia
Posts: 279
  Quote citizen-joe Quote  Post ReplyReply Direct Link To This Post Posted: 26/August/2017 at 22:57
Nothing to stop her making a claim, you need to be gathering your evidence and instructing a solicitor to defend such a claim should it be made.

Family law should be used to distribute the assets rather than this fictional second mortgage. See a solicitor sooner rather than later.

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