Legal Question in Family Law in California
Loan for Downpayment for a house
I loaned the down payment for a home to my daughter and son in law. They are now divorcing. Son in law is stating that it was a gift. It was a 5 year interest free loan. The judge is now inclined to rule that my loan will not be counted in the settlement for the home because I am not on the deed. I never intended to give 100,000 away and see no reason why I should not be made whole for the monies. Is there any case law that covers this issue or is it entirely up to the court? The judge said that I had two years to sue to recover the money but that was not the loan terms. There is a mandatory settlement conference coming up and I need advice on how to recover my retirement funds that I loaned to them. The son in law should not be walking away with 50,000 of the money I worked hard to save for my retirement.
2 Answers from Attorneys
Re: Loan for Downpayment for a house
You left out the part about the note you forgot to require, and the deed of trust you forgot to record, on the property. No note, verbal agreement two year statute applies. No recorded deed, no lien on the property.
Re: Loan for Downpayment for a house
One more thing, if there was no written loan agreement you could also owe the IRS gift tax on the $100,000. Sounds like you need to make an appointment with a lawyer.
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