When determining whether you or your spouse received gift or a loan from a third party, the court will look at the surrounding factors, such as whether there are actions or documents to support either position.
A few examples of actions or supporting documentation that might support the position of gift are:
- the lack of evidence of a loan,
- if there is no demand made for repayment,
- the demand made for repayment was only made after application/separation,
- the little likelihood of repayment,
- no mention of a loan in financial statements or prenuptial agreement,
- no witnesses to say that it was a loan, and,
- upon death, a Will found stating loans are to be forgiven (as if loan had never been made).
Actions or supporting documentation that would be considered to possibly support the position of a loan might include:
- the execution of a promissory note,
- proof of full knowledge of its existence among the parties,
- evidence of attempt to repay,
- examples of past loans paid, and,
- upon death, a Will found stating that loans are NOT to be forgiven.
Contact us anytime at SMP Law to help SiMPlify your legal matter at 905-565-9494 or email firstname.lastname@example.org if you have any questions or would like to book an appointment to meet and discuss your situation and how we can help.