A loan from the ex in laws

Samdapanx

Just wondering if anyone can help me. Me and my husband are going through divorce. When we purchased our first flat they gave us money towards a deposit. Around 14k. At the time they gave us a loan agreement from a solictor, we never signed it and they gave us the money anyway. As our family expanded we needed a bigger house and they gave us some more works out at around 18k. Now we are going through divorce they want their money back, which of course is tied up in the house.  They have sent me numerous letters saying they are taking us to court and if not paid in 6 months they are adding interest which has mounted to 27k!!
Trouble is when we was together they always said they would never expect it back and my ex partner would get less than his siblings when it comes to the wills etc when they've passed. 
We have 3 young children as well, I just feel this is a way for them to get me to sell the house, as its what my ex wants. 
Hope it makes sense. Thanks

[Deleted User]

You need to talk this out like adults would do.

Clearly you understood you were to repay it, but the paperwork is not in order. So you need to find a mutually agreeable way of returning their money, at a reasonable rate.

comeandgo

As you have property and children I suspect you have a solicitor involved.  They will be able to advise you.  Remember in asset division on divorce pension pots are taken into consideration too. 

macman

If they were taking you to court then they wouldn't have sent you numerous letters. One LBA would suffice. With no written contract, it's your word against theirs. Legally they have little chance of recovery. What's morally right is a different argument, and up to you.

Clive_Woody

Samdapanx said:

Trouble is when we was together they always said they would never expect it back and my ex partner would get less than his siblings when it comes to the wills etc when they've passed. 

Deleted_User said:

Clearly you understood you were to repay it...

Apparently not so clear from what she wrote.

If the in-laws had stated they never expected the money back then that sounds like they considered it a gift (early inheritance)....until the divorce started. 

As stated, you're probably best speaking with the lawyer handling your divorce to get proper legal advice and figure out if this does become a formal part of the settlement.

kazwookie

Tell them you will see them in court, call their bluff.

What rate of interest did you / your OH agree with them?

Personally I would ignore them, let the solicitor deal with it.

DO NOT sign anything.

Samdapanx

Interest rate is 4% above the national base rate of barclays. They've given us until September to pay it. They want 22k, if not paid by then, they are taking us to court for the full amount of intrest

[Deleted User]

Samdapanx said:

Interest rate is 4% above the national base rate of barclays. They've given us until September to pay it. They want 22k, if not paid by then, they are taking us to court for the full amount of intrest

What interest rate is quoted on the loan agreement that you never signed?  Is there any paperwork for the 18k that followed?  Did the outlaws ever sign anything for the mortgage lender declaring the money was a gift and not a loan?

GreenQueen

Samdapanx said:

Interest rate is 4% above the national base rate of barclays. They've given us until September to pay it. They want 22k, if not paid by then, they are taking us to court for the full amount of intrest

Who is the "us" in this context - you and your ex? are they expecting 50% from each of you?

-taff

If you didn't sign any loan paperwork then the money was a gift unless you specifically said [ and there's evidence] that it was a loan and you'll pay them back. Judge Judy and Judge Rinder are not what judges base their courts on. If you legally did not agree to return the money, it ws just 'understood' then they will most likely be laughed out of court, especially for asking for interest on a lona that's not acknowledged anywhere.

I suggest you go to the legalbeagles forum and ask their advice.

Samdapanx

Us is my ex yes. They have sent him the letters as well but are still on good terms with him. The intrest was set in the original loan agreement yes, they didn't even write on the agreement how much they were giving us