A member asked over 7 years ago

Past relationship money issues

To whom this may concern, 

In my past relationship I took out finance on a four-wheel drive to save my ex's car from falling apart on the old dirt road we had, so that cost me $10,000. I was made redundant from my job and am still currently paying this off! Before the relationship ended, she borrowed $3,500 off her father because we figured a road bike would be cheaper for me to get to work on! Now she is demanding that I pay her father the money back! my question is, because we where in a relationship at the time of the purchase of the car is she liable for half of the money? If I'm paying the full amount for the car, then should I even owe her or her father anything?

Law Advisor Research Team
Researchers at LawAdvisor

Hi there. It is not clear whether any formal agreement was reached between the parties when the money was loaned (e.g. a loan contract). If there was an agreement (oral or written), then you may be required to follow the terms of this agreement and repay the lender accordingly, if the agreement is deemed to be valid in the eyes of the law.

But if there was no formal agreement and you are now not able to negotiate a resolution with your former partner (or her father), then you may need to resort to more formal legal remedies. The law is designed to help couples (both married an de facto couples) divide up any shared assets or debts in the event their relationships breaks down.

It is not clear how long you were in a relationship with your former partner. If you were living with your former partner on a genuine domestic basis, then the law sees this as a de facto relationship. You have the right to apply to court within 2 years of your de facto relationship breaking down to obtain orders with respect to any shared property or outstanding shared debts. The court will take into account the circumstances in which each debt arose or asset was purchased, and who was financially responsible for those debts or assets. The court will also consider the future financial needs of both parties and their current income.

It is not possible to predict how a court would determine your case, as much depends on the circumstances of your relationship and assets/debts.

Suggested way forward

Reaching a fair outcome regarding shared property and debts after a relationship breaks down can be difficult. You should consider speaking to a family lawyer who can advise you of what legal options you have to enforce your rights. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.

Answered over 7 years ago   Legal disclaimer


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