Put it in Writing---Yes, Even when it's your Kids!!!

    Family, it's the foundation of our lives.  We help our family members when they are in need.  Usually we help with no adverse consequence, however, sometimes things go awry, particularly when property and significant others are involved.  Recently I became aware of a situation where parents gave their son a significant sum of money which was used to buy a home with his girlfriend and the mother of his child.  At the time, the young "family" was residing with the parents, they were fight providing child care for their grandchild and everything was blissful, until it wasn't.
    After living together in the new house the unmarried couple fell apart.  An ugly custody  fight ensued, and now the parents are out a considerable sum of money, that will likely require more litigation.  These issues also arise when parents, siblings, friends or others provide a "gift" of a down payment, signing a gift letter for the mortgage company.  In the all to likely event of a divorce, one spouse will get the benefit of the gift when marital property is divided.  Of course the individual who made the gift becomes angry, and often tries to character the gift as a loan.  If it truly was a loan, then a fraud was committed at the time of closing.
   The simple solution to these and other conflicts is to never hand over money without reducing the transaction to writing.  A promissory note, a mortgage, exchange of collateral, a repayment plan all will go a long way to making everyone's rights and obligations clear, avoid unnecessary conflict and litigation down the line.