Ex wants gifted money back

Jonny1975

Hi,

This is genuinely a problem a colleague of mine is facing.

He and his ex purchased a property many years ago. At the time his now ex-gf paid the deposit for the property. However she didn't want to be named on the mortgage or deeds so the house was solely in his name (believe for tax reasons on her side).

They split up a while later and she left the property. He had the property for around 4 further years (she didn't contribute to any mortgage payments once she walked out the door). He sold the property earlier this year, without informing his ex (he didn't think it was any of her business). She has now issued a county court claim for the return of her deposit money (around £6K).

The facts:

• The deposit was paid around 7.5 years ago
• The was no contract in relation to the money paid by his ex i.e. no formal or signed written agreement
• The mortgage was always solely in his name
• She has not sent any written correspondence with regards to the return of the deposit at any time. It has only been discussed in person or via text message

My understanding is that he can defend this claim relatively easily?

Thoughts appreciated.

Idiophreak

I think this is a long shot on her part, to be honest. Who knows what's gone on between the time she gave the deposit and now...did she contribute to the mortgage? Did she ever intend to get the money back in the first place?

If the place made a good profit and your colleague thought she was due her £6k back, he could give it to her...but I guess he doesn't feel that way?

Jonny1975

Thanks Idiophreak. Obviously with any break-up there's lots of water under the bridge now.

When they were living together they both paid half towards the mortgage, but when she left after around 2 years he has paid the full mortgage, plus up-keep, renovation, mortgage renewal fees etc etc ever since. As this equated to far beyond the original £6K, he feels that the deposit had been soaked up in everything else.

He didn't make that much profit on the property, maybe double the £6K. The only reason it made a profit at all was due to the fact that a considerable amount of money had been spent to get it up-together in the years since she had left.

Seemingly she feels that she did intend to get her money back at some point, but made no written or legal efforts to protect it.

I also thought that you cant claim back money after a period of 6 years?

somethingcorporate

No proof that it wasn't a gift (or that in fact even took place).

She is chancing it, I think it is REALLY unlikely she will get anywhere with this.

bargainbetty

You can't get your money back unless there was documented evidence that it was a loan, not a gift, and that the intention was always to repay the funds provided.

Unless she has documentation that indicated that it was a loan and she had reasonable expectation of payment, then she is whistling in the wind from a legal standpoint. He can argue that it was a gift, or paid back with goods, services and support over the remainder of her realationship, or whatever.

Personally, if he has taken the money from her and used it, I think he should repay it - the whole 'it got swallowed up' thing is cobblers for me. Ask him if he could have got the property of she hadn't given him the £6k. Then ask him why he thinks that since he got the benefit of that money, plus two years towards the mortgage, why shouldn't he give her some/all of it back?

Dan:_4

Your colleague will have a fun day out in court!

Turn up, deny any loan, and it will be end of story and end of aggravation

Jonny1975

There's a lot more to it than that, as 2 children are involved and he is their sole guardian (paying for everything from ballet lessons to food, clothes etc etc as soon as she left). He's a pretty fair guy and in any other circumstances it may be different, but he feels that this is a bit unjust.

She has proof that she paid the deposit, via banking, but absolutely no agreement in place. Like I said, the only conversations have been in person or via text message - I assume this doesn't stand up in court?

somethingcorporate

Text would stand up in court since it is proof.

Has he agreed to pay her back via text? If there is enough of a papertrail he may be onto a more sticky wicket.

lovinituk

Jonny1975 wrote: »

Thanks Idiophreak. Obviously with any break-up there's lots of water under the bridge now.

When they were living together they both paid half towards the mortgage, but when she left after around 2 years he has paid the full mortgage, plus up-keep, renovation, mortgage renewal fees etc etc ever since. As this equated to far beyond the original £6K, he feels that the deposit had been soaked up in everything else.

He didn't make that much profit on the property, maybe double the £6K. The only reason it made a profit at all was due to the fact that a considerable amount of money had been spent to get it up-together in the years since she had left.

Seemingly she feels that she did intend to get her money back at some point, but made no written or legal efforts to protect it.

I also thought that you cant claim back money after a period of 6 years?

Thing is, she wasn't responsible for anything after she wasn't living there so anything he spent after that was for himself. She has actually put more than £6k into the house (£6k + 2 years of half the mortgage) which he has benefited from. I think she is being quite reasonable by only asking for the deposit back with no interest! Also its not her fault that house prices have dropped in the last few years.

It sounds like he wouldn't have been in the position to even own the house, let alone make any profit on it, if she hadn't funded the deposit.

Ask your friend how he would feel if it was the other way round! I think the right thing to do is to give her back her money.

Jonny1975

No, absolutely no agreement to pay the money back via text or in person. He has been quite upfront around the whole subject, as in no agreement to pay anything back, just threatening repetition that she wants her money.

Jonny1975

@lovinituk - As I have said, there is more to it than just face value, but I am merely stating the facts of the matter in hand.