In the recent Case of Phe & Leng the Family Court held that a text message sent by the Wife to the Husband’s sister was sufficient evidence that a loan was owed by the Husband and Wife to the Husband’s parents.

The wife had alleged that the loan was not a joint liability and rather the Husband’s debt alone as the funds had been deposited into the Husband’s bank account and not one that was in their joint names.
The Court held that the text message sent by the wife to the Husband’s sister that said she would return the money was evidence that she considered she was responsible for the debt and not just the husband.

It’s quite common for one spouse to be loaned money from their parents. If this does occur, you should ensure that it is properly documented in a loan agreement between your parents as well as you and your partner. A loan agreement provides greater certainty for the Court to determine that the money is in fact a loan and not a gift. If you don’t have a loan agreement, you may look for text messages that record your text messages around the time as it may be evidence of whether there was an intention for the money to be repayable.

Lagom Family Law can assist you to draft a loan agreement to reflect a loan from your parents or other people. Loans can also be a complicating factor in determining your property settlement. Lagom Family Law have extensive experience advising clients with complex property settlements and can help you negotiate an arrangement outside of court.

Lagom is Swedish and means not too little, not too much, just right. This is our philosophy of practice as we aim to provide tailored advice specific for your individual needs - that’s just right for you!

Lagom Family Law is a boutique legal practice lead by Principal Lichee Hogland who strives to achieve the best possible outcome for her clients whilst being approachable and respectful.