How to give money to your child (but not their ex)
Most parents want to help their children build financial security. But without sensible conversations and documentation, a well-intended gesture can go wrong.
Parents want to know their money won’t end with an ex-partner in the event of a messy break-up. Simon Letch
The bank of mum and dad has become one of Australia’s largest lenders. There’s no call centre, but complaints do arise, and some disputes even end up in court. At the heart of most litigation is one question: was the money a gift or a loan?
For example, in the NSW District Court last year, Matthew Lenard Wilks was ordered to repay his in-laws, Andrew and Robyn Merenuik, $135,000 after he unsuccessfully claimed that they had advanced him and his late wife (their daughter) $324,000 as a gift rather than a loan.
Lucy DeanWealth reporterLucy Dean writes about wealth management, personal finance, lifestyle and leisure, based in The Australian Financial Review's Sydney newsroom. Connect with Lucy on Twitter. Email Lucy at l.dean@afr.com
