Family assistance is often instrumental in helping couples onto the property ladder. However, when a relationship subsequently breaks down, determining whether those funds were intended as a gift or a loan can have significant relationship property consequences.
This session will examine the legal principles governing the distinction between gifts and loans in the relationship property context, focusing on financial contributions made by parents and other family members to couples during a relationship. The characterisation of such contributions can have a significant impact on the division of property and may become a key issue in negotiations, particularly where no contracting out agreement is in place.
Drawing on relevant case law, we will explore the evidential factors courts consider when determining the intention of an advance, including documentation, conduct, family dynamics, and cultural expectations surrounding family financial support. The session will also consider practical strategies for advising clients who anticipate advancing funds and/or receiving funds in this context.