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LEGAL ADVICE: Loan from parents - only repay in event of divorce


stush
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My parents lent me monies to purchase a property approx 1.5 years ago..

 

They gave me the monies on the basis i only repay in the event of divorce, and they wanted me to have a document drawn up, which I didnt get done, but nothing was said.

 

In the last few months I have got married (and happily married) and now moved into the property with my new wife.

 

My parents have now asked that they want a legal document drawn up to confirm the terms of the monies that they had lent me and that I would have to repay in the event of divorce.

 

So far I have always paid the mortgage as my wife hasnt been working until last few weeks, and we currently dont have a joint account.

 

Is this something that is possible? Even though I am now married?

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I don't know if it is possible but, and meaning no disrespect to your wife, by way of explanation for your parents request I know that some of my older neighbours are wary of signing over 'inheritance' in order to protect the inheritance from 'ex's resulting from divorce, be that divorce likely or not.

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Your parents cannot require you to deprive your (ex) wife of her legal entitlement particularly if she isn't a signatory to the said agreement

 

You need a declaration of trust which will secure your parents portion of the property in the event your unable to repay the loan

 

I suggest you see a private client solicitor

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So you 'used' the money BEFORE you married As she has a legal right to occupy the property you will need her written consent to permit a charge to be lodged

 

This could get messy later on if not handled properly so my advice is see a private client solicitor before doing anything

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