Is it a loan or a gift?

Quite often circumstances will arise outside of a marital situation but within family or other close relationships where money is loaned in the anticipation that it will be paid back, whereas the person in receipt of those monies has thought it was an outright gift not to be returned.

Arrangements are often made without any written agreement as to what the intention of the payment of money was and whether repayment was expected and, if so on, what terms.

It is therefore important if there is an issue about this that any email /text evidence there may be to support it was a loan is kept safe. It is very important to keep the emails/texts as supporting evidence (which can be produced in Court if necessary) to back up any oral evidence that will be given.

In order to avoid this eventuality if you are considering making a loan as above  it would be an idea to consult a solicitor to ensure a properly worded loan agreement is drawn up so disputes of this nature and the resultant Court costs which can be incurred can be avoided.

If you would like further advice regarding this, please contact John McCormack on 01743 285888 or email John johnm@terry-jones.co.uk

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