A family law expert is warning parents looking to help their children buy their first home to have plans in place for what will happen to the money in the event of a relationship breakdown.

Amid persistently rising house prices, more parents are helping their children get into the property market with increasingly generous amounts of money.

As a result, they have become more cautious about the legal consequences of their children separating, particularly with the rising trend of separation and blended families.

Justin Dowd, head of growth and markets at Watts McCray Lawyers, says parents and those lucky enough to receive money need to put a solid plan in place.

Where parents are proposing to provide financial assistance it is essential that the arrangements be properly documented to make sure that everyone is clear on what the agreement actually is, Dowd says.

Many people think it is not necessary, or they are too embarrassed to talk about it, but it should happen before the money is advanced, he says.

Dowd, who has a long career in family law, has seen many examples where disputes arise because it is not clear what happens if the relationship were to end, or there is a death.

“The difficulty often hinges on whether the money was, in the eyes of the law, a gift or a loan,” Dowd says.

QOSHE - Helping kids into property? Watch out for divorce, parents warned - John Collett
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Helping kids into property? Watch out for divorce, parents warned

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26.03.2024

A family law expert is warning parents looking to help their children buy their first home to have plans in place for what will happen to the money in the event of a relationship breakdown.

Amid persistently rising house prices, more parents are helping their children get into the property market with increasingly........

© The Sydney Morning Herald


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