Separation / Divorce: Refunds of In-Laws in The Event of Divorce

Reimbursement of property donations from in-laws in the event of marriage failure

Cases in which parents-in-law, after the failure of the marriage of their own child with the child-in-law, want to reverse asset donations in favor of the child-in-law from good times, are becoming increasingly important in practice.

If the parents-in-law of their daughter/son and the child-in-law have large amounts of money, e.g. to finance the purchase of a property, the expansion of an attic story or the purchase of a fitted kitchen, it should therefore be clearly defined beforehand whether this is a loan or a gift. This is because gifts of assets from in-laws are often viewed by them as a loan, while the recipient of the benefit regards them as a gift.

As long as the daughter/son is married to the child-in-law, there is usually no question of reclaiming the money. If the couple split up, however, the parents-in-law no longer want to favor the son / daughter-in-law and demand their money back. However, this only works if the legal basis for the donation can be clearly defined. A loan or a gift can be considered as the legal basis.

If a larger amount of money has flowed and a loan agreement cannot be presented for this purpose, the description on the transfer form is an indication of the legal basis of the asset allocation.

Loans for households

A transfer with the addition “loan” is usually sufficient. However, if the transfer form only states, for example, “fitted kitchen”, “extension of the attic” or “special equipment”, no loan with a corresponding claim for repayment can be derived from this if no separate loan agreement can be presented for these purchases. In this case, the child-in-law can refer to a gift to both spouses. However, this does not mean that the in-laws’ claim to repayment of the donation of assets is not doomed to failure.

The case law differentiates in the case of gifts of assets from in-laws, which do not constitute a loan, according to the amount and the purpose. In cases of larger donations of property, she tends to regard these as gifts to her own child, but to equate those to the child-in-law with marriage-related donations between married couples. The donation of assets is therefore not subject to the right of donation, but to the principles of the discontinuation of the business basis, which are based on the fact that larger free donations in relation to the child-in-law are not made out of sheer generosity to be finally allowed to keep, but are made in the expectation of the continuation of the marriage.

In order to facilitate later repayment claims, it is advisable to obtain legal advice before the donation of assets.

Asset protection and advocacy at the end of the marriage

Even if the marriage is for life, it is in many cases prematurely ended by divorce. In addition to the often-high emotional cost, divorce raises a number of complex legal questions. These affects both the assets (gain, pension adjustment, maintenance) and joint children (custody, rights of access).

For a non-binding mandate request, please contact one of our contact persons directly by phone or email or use the contact form at the end of this page.

Legal services related to divorce

Our divorce lawyers, specialist lawyers for family law and tax advisors are at your disposal at our locations in the event of a divorce uncontested with all questions and problems and represent your interests in and out of court.

If the spouses’ assets include business assets, i.e. a company or a participation in a company, you can find further information. In these constellations, not only is a good divorce lawyer required, but also business law and tax expertise.

Legal Consequences of Divorce

Further information on the legal consequences of divorce can be found on the following pages:

  • Profit sharing
  • Pension adjustment
  • Entertains
  • Custody and access rights for underage children
  • Consequences of divorce under inheritance law
  • Real estate in divorce
  • Change of name after divorce

Process and costs of a divorce

In the following, we give you a brief overview of the typical divorce proceedings from the point of view of those who want to apply for divorce. If the other spouse has already filed for divorce, the consultation begins accordingly at this later point in time.

  1. Contact lawyer by phone or email free of charge and without obligation to clarify initial questions
  2. Initial consultation at a flat rate or according to the time required to clarify strategic and legal questions in connection with the divorce as well as an assessment of the remuneration (statutory fee, time fee or fixed price possible)
  3. Clarification of the facts, in particular the marital relationships (year of separation, children, etc.) and economic circumstances with regard to maintenance, profit compensation and pension compensation, including review and examination of the relevant documents such as marriage certificate, marriage contract, articles of association, wills, etc.
  4. Determination of the strategy: Examination of the possibility of an amicable undisputed divorce as well as determination of the economic and other goals of the divorce proceedings
  5. The divorce proceedings themselves begin with the filing of an application for divorce, which requires legal representation. In the case of a disputed divorce, the divorce attorney will then regularly submit separate applications, for example for maintenance, gain compensation or custody. At the end of the divorce comes the divorce decree.

You can find detailed information on divorce proceedings, the process and costs of divorce, as well as tactical and strategic questions about a successful divorce on Right Lawyer’s website.

The divorce date only occurs when the judge at the responsible family court finds the divorce to be ready for a decision. For this, in particular, certain information from the spouses must be available and disputed arguments must have been adequately exchanged by the lawyers.

For more information, do not hesitate to contact Right Lawyers at your earliest to know the refund and property division after the divorce.

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