Son; “Mom can I have twenty dollars?” Mom:” Does it look like I’m made of money?” Son: “Isn’t that what M.O.M. stands for?”
This is a sad cautionary tale.
Mum and Dad loaned their daughter a total of $367,903.90 over a period of years. They asked for repayment of the money, but nothing happened.
They arranged for their lawyer to make formal written demand for payment, but nothing happened. Mum and Dad eventually sued their own daughter!
At Court, the daughter’s defence was that she accepted the amount advanced and that it was a loan. But, she said that the arrangement with her parents was that she would only have to repay the money if her personal and financial position enabled her to do so. She said she could not repay the money as her financial position didn’t allow for it.
The High Court, not surprisingly found in favour of Mum and Dad, and ordered the money to be repaid.
During the course of the hearing, the lawyer for the daughter mentioned something that is entirely relevant:
” Family situations are often very complex. Obligations and understandings are often expressed orally or even left unexpressed.”
So, the moral of the story is – avoid misunderstandings, even when dealing with your own children. Put any arrangement in writing, and avoid the heartache of having to sue your own children (or watch from the grave as they fight amongst themselves after you’ve gone. Over what? money.)
We can help you to put something in writing to protect you and your kids. Contact scott@queenstownlaw.co.nz or phone 03-4500000. [/vc_column_text][/vc_column][/vc_row]