My mother in law gave my husband money (amounting to A$25,000.00) as 'gift' in order to get a house (mortgage); after a year, when she learned that my sister in law paid my husband the money my sister in law owes (A$50,000.), my mother in law asked my husband to pay her back! And now she's suing us; we we're stunned & shocked! It was so upsetting because. D money that my sis. In law paid, we put it already as payment in our mortgage too. This is so disappointing! Any comments?

Do you have anything on paper? Proving that she gave u the money as a 'gift'?

We prepared one but my mother in law refused, she insisted it's a sincere gift; what is really shocking is she's suing us for A$50,000. its plain extortion! Sad to say, we were trapped in her hidden agenda because. She's an addict pokies player!

First she can only sue for the amount she gave you, and it can't be in small claims court because of the amount.

So she will attempt to prove it was not a gift and you will have to try and prove it was a gift. Then the judge will decide, so for that amount you need an attorney.

I'm confused. Your sis-in-law paid back money ($50K) that she had borrowed from your husband. And now your mom-in-law is upset? I can understand her being upset, if the sis-in-law paid your husband money she owed the mom. But if it was money the husband (her brother?) loaned her, what has that got to do with their mom?

Exactly, because. At first my mother in law didn't know that my husband lent his sis d money. But when right after she knew about it, that was d time she wanted her money back that she gave my husband to help him to get a house! My mother in law & sis. In law are not in speaking terms! Bottomline, we didn't ask for that gift, & we can prove through testimonies by common family friends & relatives that my mother in law indeed gave d money as gift!

OK, Bottomline, she won't win her suit. But is it worth dividing the family up over it? I'd apologize and offer to pay it back. If you don't care about the family breakup, let her take you to court.

To be fair & square, we were only willing to pay the exact amount my mother in law gave, but she's asking for more; unfortunately 'd family were all broken up long before I met my husband'; my husband & I just really learned d very hard way!
Thanks for all your comments guys, I truly appreciate all your time & effort!

Hello question:

In the first place, I would NEVER pay back a gift. Nobody really would. The fact that you want to be "fair & square", means you think it's a loan too.

For sure, if you get to court, and/or if you've made any written statements with your "fair & square" comment, the judge will think it's a loan and you'll lose.

IF, on the other hand, it's a gift, and you argue that it's a gift, and you refuse to pay it back, because it was a GIFT, then you would win, because she has to prove her case. Without YOU and your “fair & square” comment, she can't.

excon

Whether it's a gift or 'alleged loan', just to get over & done w/ d drama & tribulations that we're experiencing, my husband is willing to 'give back that money gift'; TO BE FAIR IN A SENSE DAT PROVIDED ONLY THE EXACT AMOUNT MY MOTHER IN LAW GAVE; even our solicitor agrees to dat; we got d deposit slip anyway showing how much money she only puts in, so she can't really win!

Well, I can see the mother-in-law being upset if she gave her son a down-payment for a house because he was in financial difficulties, only to find out that the difficulties were because the son had loaned a large sum of money, only to be repaid the loan within a year of getting the gift. 25K is not a small gift, and to find out that her son is now in possession of twice that might make her feel like she was taken.

On the other hand, I'd only be asking for the 25K back, myself. Or else just making a quiet note to myself that your family will not be getting any future help from me, or more than token gifts.