Recovering Money Invested in Someone Else's Property

If you gave your son or daughter a deposit for a house, and they are now getting divorced, can you get your money back?

It is a sad fact of life that couples get divorced and then go through court proceedings to work out how to divide their finances. But what happens if the parent of one of the couple has invested in the marital home or other property?


What is an Intervener in Divorce Proceedings?

Divorce cases typically involve working out what the joint assets of a couple are, and how they ought to be divided. In some cases, there can be a third party who would claim to have an interest in those assets. A classic example would be where a parent of one of the divorcing couple has provided a loan to purchase a property. The parent would be an "intervener" in the divorce proceedings. 

Another way in which a third party can become an "intervener" is if they loaned property to the couple for building work or general improvements. 

If these circumstances arise, it is possible for one of the separating couple to challenge or deny the intervening parent's interest in the property.


Can a Parent Reclaim Money Loaned to Child?

The parent who loaned money to their child to enable to them to buy a property, needs to make an application become an "intervener" in the divorce proceedings between the intervener’s child and their estranged partner.

At the final hearing in the divorce proceedings, the assets of the divorcing couple are considered and the intervener has an opportunity to claim that they have an interest, if they loaned the couple money for a deposit, or to carry out building works to their property for example.

The intervener has to prepare written evidence explaining how their interest in the marital home has arisen, and prove that the money they gave to the couple (or to one of the parties) was a loan and not a gift. The intervener then needs to attend a final hearing so the judge can decide whether their assets should be protected.


Legal Advice for Interveners

If you have invested in someone else's property and you want to recover that investment, we can help. We can help you make an application to the court to ensure that your assets are protected, and not swallowed up in divorce proceedings. 

Contact us for a free discussion with one of our legal experts about your case.