Loan in ex mother in laws name

Kevb1979

Hi can anyone give some advice with this situation.

In about 2001 I met my now ex wife. In 2002 My ex mother in law took out a loan of £5000 to help us try and get on the mortgage ladder. We couldn't get a mortgage so my ex mother in law said keep the money and build for the future, there was no written agreement between us. My ex wife likes to spend lots of money and she pretty much spent the lot. My ex wife and myself got into a few financial difficulties and couldn't pay it back. My ex mother in law paid off the debt for us. The debt was clear in 2007. I broke up with ex wife in 2014, I have since received 2 letters from my ex mother in law asking me to pay back the loan she took out for us. My ex mother in law has claimed including interest the debt is £9625 and I should pay back half of this amount, she is also threatening me with taking me to court to get the money and also saying a CCJ would not look good for my future
career path. If anyone can give me some advice it would be most appreciated.

Caz3121

legal (not moral) view
what does she have in writing to show that this money was a loan that needs to be repaid?
If nothing then it sounds like she has no case and is hoping to scare you into giving her the money...is she taking her daughter to court too?
might be worth having a read here https://forums.moneysavingexpert.com/discussion/76953

Kevb1979

The loan was taking out with a bank and I don't believe she is going to take her daughter to court.

macman

The loan became a gift if she said 'keep the money'. No agreement to repay and no agreement to repay with interest. No attempt to reclaim through the civil courts would succeed.
The fact that your relationship with her daughter broke down is irrelevant in law.

robatwork

Did you make any payments to her either before or after your split?

On the face of it, unless she specifically forgave the loan, I would say you and ex both owe her half the £5,000.

I wouldn't say you owe her half the £9,625. She gave you £5,000. Guess that bit depends on what agreement, verbal or otherwise, you had with her at the time.

antrobus

Kevb1979 wrote: »

.... If anyone can give me some advice it would be most appreciated.

Any claim by your former mother in law would now be statute barred.

macman

'Keep the money and build for the future':
MIL gifted the loan, it is not returnable in law.
She did not say 'keep the money unless you get divorced'.
The fact that MIL feels that 'morally' you should return 50% is irrelevant in law.

andyfromotley

Did you ever make any repayments to your MIL in regard to this loan?

Was there ever any agreement to repay this loan?

Legally i think this is pretty clear cut. She will not be able to get you to pay her the money. Morally only you know the true circumstances of how this money was lent/given to you, and what was expected in return.

dealer_wins

To me it is obvious it was a gift, and you can politely tell them to go and do one.

But its a lesson to us all, dont be a lender or borrower to/from family even, it seems to cause trouble every time!

Mirno

Even if it wasn't a gift, the money was loaned in 2002 and you've made no payment on it since so haven't "acknowledged" the debt.
It would be statute barred if it was a loan (which it clearly isn't).

bris

It looks like a gift, unless you have paid anything towards it since after 2009, if not it's statute barred anyway.


If they are clever the ex could say it was a loan and you have been paying it when you can, this would give the MIL a case.