Legal Question in Real Estate Law in California
repayment of gifted money after a breakup
I purchased a home and my ex-fiance gifted me $12,000.00 as
a down payment on the house. We moved in together and he
put an additional $6000 for concrete and such. We recently
broke up and he moved out. He is now in the process of suing me for pain and suffering, the additional $12,000,
$6,000 for what he put in to the house. He is stating he
is going to force me to sell the house. His name is not
on the house, nothing was ever signed stating the money
was or wasn't a gift. Could I possibly be forced to sell my house to pay back monies I may or may not be liable to pay him for??? Thanks
7 Answers from Attorneys
Re: repayment of gifted money after a breakup
Need more info. Depending, it could go either direction. If prove it was a gift, it will be decided that that portion was a gift. He may be entitled, however, to the $6,000.00 plus possible increase in value. Please call to discuss further.
Re: repayment of gifted money after a breakup
If the money was a gift, you are not responsible to return it. Our lawfirm can help you defend this lawsuit and we represent parties throughout California. Please contact our office for review of the lawsuit and consultation.
Re: repayment of gifted money after a breakup
It depends on how much money ultimately he will have coming back to him. Of course you possibly can depending upon how much money you have now intact to pay them off if he deserves anything at all. Why wasn't anything put in writing. Love may conquer all but it doesn't conquer the court system and that is where all of the loving couples and that after love of is gone. Don't feel bad do you are one of many thousands of couples who stupidly, blindly, without commonsense deal in real property transactions without a written agreement because, they are in love. Now I am not a cynical individual I just am the one who has to unscramble the eggs when people make a mess out of something. What you need is a good attorney and not a computer screen. Get yourself in attorney who can invite you on real property transactions and situations like this. Either way, the pain and suffering situation doesn't hold up in the California courts for the most part if at all. It's called the up and down of real-life.I have been practicing law in this legal area for over 30 years and understand your problem well. I practice in the S.F. Bay Area and if you wish to contact me call at 925-945-6000.
Re: repayment of gifted money after a breakup
Its easy to sue but not always easy to win. Real estate agreements are suppose to be in writing but the writing requirement is minimal. If he can trace the funds to you, he may have a claim. Your defense, of course, would be to claim that everything was a gift.
Find a real estate litigation attorney as soon as possible, one close to the location of the property.
Re: repayment of gifted money after a breakup
The answer to your situation may depend on how long you lived together, and whether he can prove that he actually gave you any funds to purchase the house. It is doubtful that he will be able to force you to sell the house; however, he may be able to obain a money judgment against you if he can prove the amount of money he gave you.
Re: repayment of gifted money after a breakup
First, unless there's a lot more to your fact pattern than is usual in a couple's breakup, he isn't going anywhere with a suit for pain and suffering. "Pain and suffering" is generally thought of as an additional element of damages in a personal injury (tort) matter, and not something for which damages are available when a relationship ends. In an extraordinary situation, a suit for "intentional infliction of emotional distress" can be brought, but 98% of emotionally painful breakups of couples (including married couples) wouldn't qualify. The anguish of breakup is part of life, not a legal wrong.
Now, as to the house. There is a principle of law called "purchase money resulting trust" which in everyday terms can be explained as follows: If X provides the money, and Y uses it for the down payment to buy real property that ends up in Y's name, Y holds legal title as trustee for X, unless X intended to make a gift to Y. A gift is presumed if Y is "the natural object of X's bounty," i.e. X and Y are husband-wife or parent-child (for example). The presumption of a gift can be rebutted by evidence that no gift was intended. On the other hand, if Y is NOT the "natural object of X's bounty," i.e. they are employer-employee, business partners, etc. the presumption is no gift, but that too can be refuted by evidence that a gift WAS intended.
I do not know how a court would rule on a boyfriend-girfriend situation, both outcomes are possible, but more likely than not in favor of a gift. In that case, you win, he cannot successfully assert an interest.
If, however, the court thinks there was more likely an intention to share ownership than to make a gift, your ex would be an equitable co-owner with you as a tenant in common in proportion to what his $12,000 was of the entire down-payment. If it was a $200,000 house and the down-payment was $40,000, the $12,000 would make him a 12/40ths (or 30%) owner. He could then force a sale through a partition lawsuit.
So, your position is not rock solid, to say the least. I recommend you review all the potential evidence relating to the gift/not a gift issue that either of you might produce at trial. This could include your correspondence, your friends' recollections, your mortgage papers (in whose name is the loan, if any?), your negotiations with the seller, and your loan applications (e.g. for what was entered in response to the 'source of down payment' question).
I have some degree of specialization in this kind of case and I would be pleased to review your situation with you in greater detail if you contact me.
Re: repayment of gifted money after a breakup
He could win.
It is time for you to marshall your evidence.
Joel Selik
Broker/Attorney
800-894-2889