Watch Out For the In-Laws During Divorce
A landmark ruling in Germany has seen a shift in the way property and gifts are divided during a divorce. A judge in Berlin has ordered a man to pay back a gift of €29,000 (£25,000) which was given to the couple to help them buy a house. Seeing as they had given the deposit for a family home and there was no longer a family, the in-laws argued that they should get the money back. It should be stated that the man was still living in the home and the ex-wife had moved out. This case is set to influence other such cases around the world as a precedent for gifts which are given to a couple by the parent’s of one spouse.
The judge stated that the ‘contractual basis’ of gifts like this depended on whether it had been given so that the in-laws’ child could enjoy it as well as their spouse. In the case of a mortgage deposit this is obvious as both parties will be living in the house. However, now other gifts may be called into question. If parents want to avoid having to take this kind of action should their child separate form their partner, then they will have to make it clear that the present is intended for their child only.
Lawyers have linked this case with the rise in pre-nuptial agreements where parental anxiety leads to an agreement over gifts given to their married children. This has mainly been sparked out of the fact that many parents now have to help their adult children buy a house. Parents are anxious that the money or items which they have gifted to the couple will pass out of their child’s hands should a separation occur, and therefore they stipulate that the gift or money must return to their child or themselves on the break-up of a marriage.
In England, any assets handed over are considered to be a gift. If you can prove that it was not a gift then it will be up to the court to decide what happens with it. If you are having property problems during a divorce contact a solicitors firm.
