Family loan

Flip1234

Hi apologies if I'm posting in the wrong area. In 2012 my wife and I bought a property. My FIL leant us 35000 towards the cost. We had an agreement that within 10 years we would repay him 1/5 of the properties value. 10 years went by and he wrote the debt off. We are now getting a divorce and ex has said that FIL now wants his money back. Is he able to do this?

System

What is in writing? Is there a contract for the original loan? Is there some documentary proof where he writes the debt off?

Flip1234

Hi yes it was a signed contract. It was 2002 and not 2012. As its over 6 years that contract date has passed would it be statute barred?

Flip1234

I've not seen proof of write off. It should have been paid in 2012.

Flip1234

The ex wants to buy my share of the house. It looks to me that this is a way of reducing my equity in the property. If FIL gets his share I will be left with 30000 for a 315000 house.

DCFC79

This is why money shouldn't mix with family.

Gaz83

Do you have a mortgage on the property?

Did your bank / building society know you were buying the property with aid of a loan?

foxy-stoat

Flip1234 wrote: »

Hi apologies if I'm posting in the wrong area. In 2012 my wife and I bought a property. My FIL leant us 35000 towards the cost. We had an agreement that within 10 years we would repay him 1/5 of the properties value. 10 years went by and he wrote the debt off. We are now getting a divorce and ex has said that FIL now wants his money back. Is he able to do this?

So 17 years ago you accepted £35,000 to help you to buy a property, now you want to wiggle out of paying him now you guys are splitting up.....

Sounds like you need to give yourself a good talking too.

foxy-stoat

Flip1234 wrote: »

Hi yes it was a signed contract. It was 2002 and not 2012. As its over 6 years that contract date has passed would it be statute barred?

You can't really use this as an excuse not to pay as the contract would of been taking the date where he should of received a 5th of the property's value past the 6 years.

Unless you are saying, its 6 years from the date you should of paid him, but didn't so he cannot "enforce" the debt. Actually the debt never disappears, the Statue Barred only prevents them from taking legal action to enforce the debt. Does the FIL need to take legal action to get his money back?

foxy-stoat

Flip1234 wrote: »

The ex wants to buy my share of the house. It looks to me that this is a way of reducing my equity in the property. If FIL gets his share I will be left with 30000 for a 315000 house.

Meaningless without knowing the mortgage balance.

MEM62

Flip1234 wrote: »

The ex wants to buy my share of the house. It looks to me that this is a way of reducing my equity in the property. If FIL gets his share I will be left with 30000 for a 315000 house.

It is a predictable tactic. Divorce is often a dirty business. (Although I can see FIL's view. Why should his money benefit you to the tune of £17.5K when you are divorcing his daughter?) Ultimately, a court will decide whether it works or not but if you and your ex choose to fight it that far you will loose more than that in legal fees. You'll both be far better off being sensible and coming to an agreement rather than making you lawyers rich.