Dear Quentin,
Twenty years ago, my sister's husband left her. She had two young children and a lot of debt. I was in a position to lend her money to pay off those debts. Their divorce decree stated that they each had to pay me half. Of course, they never did. Fast forward to now. Her current husband died and left her more than $250,000. However, she did not offer to pay me. Can I go after her legally for this?
Sister left out of pocket
See also: “He broke down in tears”: I gave my contractor $100,000, but he used it to pay off his debts. What chance do I have of getting my money back?
“If you're lending $50,000 to a friend, family member or business partner, you should have black-and-white John Hancocks.”
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my dear sister,
Money lending should never be taken lightly. When you lend money to people – including in particular – family members, sign a loan agreement, stating the amount of money you lend, the time period you want to get it back, and how you will repay it (in installments or in one lump sum). lump sum), whether there are any guarantees, plus interest and late fees. That's a lot, isn't it? Especially for brothers. But it also reflects how serious the deal is, and reminds both parties that it's not a deal to be taken lightly. If you're lending $50,000 to a friend, family member, or business partner, you should have John Hancocks in black and white.
But can this be considered evidence of providing a loan to your sister and her ex-husband? John Lambros, a Brinkley Morgan attorney in Fort Lauderdale, Florida, is conflicted about whether this will help you in your efforts to recover this money. He says: “The sister who is owed the money is not a party to the divorce ruling.” “So it is unlikely, if not impossible, that she would be able to sue for violation of the divorce decree. Assuming the loan was actually made, the divorce decree could be used as clear evidence that her sister and her husband acknowledge the debt owed to her sister.”
It's a messy and complicated situation, since you don't mention anything about either party signing the loan agreement. “A sister would likely do better in suing on the grounds of breach of contract, i.e. making a formal loan and not repaying it, or through the equitable route of unjust enrichment – where she provided a benefit without receiving compensation,” he adds. “She would have no basis to bring an action under the divorce decree, but it would certainly be helpful for her to file an action through the appropriate channels indicated.” Lambros practices family law, and emphasizes that this will be a civil action outside the scope of family law.
Randall Kessler, a divorce attorney based in Atlanta, Georgia, was a little more optimistic about your case. “This person should be considered a third-party beneficiary and would likely have rights and consult with an attorney immediately,” he said. But he questions whether this can be enforced through a court order, given that it is a divorce decree between your sister and your ex-husband. “Even if it is not enforceable as a court order, a contract attorney may be able to litigate the contract if both parties have already agreed and signed it. Often times, things that the courts do not enforce as a court order, can be enforced separately as a contract.”
If you can prove that you gave or loaned your sister money, where is the evidence that you must be repaid within a certain period of time, and that she agreed to pay the full amount? Since your sister has inherited $250,000, your best chance of seeing that money again is to approach her first, politely and directly, pleading with her to do the right thing, and reminding her that you helped her and her then-husband. When they were in a difficult situation and needed money. Try the path of least resistance before hiring lawyers and courts.
Also from Quentin Futrell:
My mother's will left her house to her two children and two nieces, but she sold her house. Could the nieces be after us for the money?
I didn't see how this could happen to my family — until now: My brother drained $200,000 from my mother's savings. How can I stop it?
The day my stepfather died of brain cancer, he changed his trust and left everything to my sister. Do I have any recourse?
You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com, and follow Quentin Fottrell on X, the platform formerly known as Twitter. The Moneyist regrets that he cannot respond to questions individually.
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