Legal Question in Civil Litigation in California
Demand for payment of a gift
I was given some equiptment for my business by my soon-to-be former father in law 2 years ago. His son and I are divorcing and he is now demanding payment for the equiptment. We never entered into any type of repayment agreement because the equiptment was a gift to us. My spouse and I divided up property and the equiptment went to me. He wants nothing to do with the situation, stating that it's between me and his father. Can my father-in-law now demand payment.
3 Answers from Attorneys
Re: Demand for payment of a gift
He can demand anything he likes; and anyone can sue anybody for anything. Winning is not the same thing. If sued, get an attorney to fight it.
Re: Demand for payment of a gift
No. Unless the giver informs the recipient of other terms at or before the transfer, a gift becomes the recipient's property immediately and the giver loses all rights to it. Your father-in-law cannot retroactively turn his gift into a sale.
Re: Demand for payment of a gift
No. A gift cannot be "rescinded" to permit the gift giver to be entitled to payment. The equipment was a gift. Tell father in law that he gave it to you and your ex spouse as a gift, and consistent with that understanding, your ex spouse agreed to surrender his interest in the equipment as part of the divorce. Period.
Good luck.
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