It is becoming more and more common for parents to support married couples, either through financial assistance or helping them obtain assets such as a mortgage for a home or vehicles. Are these gifts given by the parents or is there an expectation they should be repaid or remain as possessions of the parents?

It is important to have a clear understanding of what is gifts from parents and what remains their possessions or is to be repaid back to them. This becomes particularly important if you divorce your spouse.

Here are some suggestions for receiving gifts from parents as a married couple:

• Keep a paper trail of whether the assistance was a gift or was to be repaid.

• If the assistance is to be repaid, then draw up a payment schedule. Even if you cannot stick to the exact schedule, it is important to have an agreement.

• Ensure you make some form of regular payments if it is to be repaid to be consistent that it was not a gift.

• Ensure your spouse also signs any agreements or receives a copy of the agreement confirming her knowledge and agreement as to whether it is a gift or a loan.

• The best practice is to be clear with the intentions of the assistance.

SMP Law is always here to help SiMPlify your legal matter and answer any of your questions. Contact us anytime at SMP Law to help SiMPlify your legal matter at 905-565-9494 or email info@smplaw.ca if you have any questions or would like to book an appointment to meet and discuss your situation and how we can help.

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