A recent case has highlighted the problem in trying to help your kids buy a house if they separate in the future.

We all want to help our kids and we all want to do the best we can by them. However, we also want to protect ourselves should their marriage end in divorce. Approximately 2 out of 3 marriages now end in divorce.

In the recent case, the husband’s father had given $240,000 towards the cost of buying and building a case for his son and new daughter-in-law. There was no legal arrangement drawn up between them.

The problem in the Family Law Court is how to categorise that payment. Was it a loan? Was it a gift? Must it be repaid? Or does it count merely as a contribution for the husband to divide the assets if the matter goes to court?

The answer is a complicated one. It becomes even more complicated if you guarantee a loan when your children buy property.

Every parent wants to help their child; it is important that you protect yourself in the Family Court jurisdiction.

For more information call Ioanita Dines or Greg Martin at Martin Bullock Lawyers – for all your legal solutions.

Information champion: Major reform of freedom of information laws

“Freeing up information in NSW”, Law Society Journal, February 2010, p.60.

Illegal downloads: Internet service provider not held responsible

and

Resale royalties: Sellers – and buyers – of art works may have to pay

“Lessons from down under on legitimate appropriation”, Law Society Journal, March 2010, p.37.

Estate executors: Know your tax obligations

“Tax responsibilities of executors”, Law Society Journal, March 2010, p.42.

Voting rights for vision impaired: Secret voting a right

“Seeing to vote”, Law Society Journal, March 2010, p.70.

Register trust deeds: Stamp duty costs if the deed is lost

“Cost of losing a deed”, Law Society Journal, March 2010, p.36.

Newsletter No 2 2010