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I'm borrowing a large sum of money from a family member - can you recommend a template for a loan agreement please

(4 Posts)
Namechanger2015 Tue 01-Nov-16 20:53:12

I am going through a messy and expensive divorce, one of my family members has agreed to pay my court fees (expected to reach approx £60,000) which I will pay back once I have agreed a financial settlement with my exH.

There is close to £1m in assets being contested, so I am expecting to receive enough to cover the loan repayment in one go. However if not I will pay off in small chunks with my earnings over the next 2-3 years.

However I would like this written up and signed by both parties, and to be legally sound - my barrister has advised we do this so I can formally let the courts know that I have this loan to my name when we come to discuss finance needs at the final hearing.

The idea is my family member will pay my legal fees straight to my solicitor as the bills arrive, rather than transfer me over a lump sum. I am not sure what kind of loan agreement I need?

Many thanks in advance.

Me2017 Wed 02-Nov-16 17:35:42

Can your solicitor provide an agreement for you?
If I were the family member I would want it to be secured over the marital home by the way and the charge registered at the Land Registry but that is a point for the family member not for you. They may also want a say in whether you agree a settlement to keep costs lower or not but again that would be a clause they might ask for not you.
Also if I were you I would want a right to check the lawyers bill sbefore they are just sent for payment to the family member in case the lawyer has charged more than you expected.

Allthebestnamesareused Wed 02-Nov-16 18:28:07

Your solicitor should be sble to handle this for you - or an assistant within his/her firm. It will also need to deal with whether interest is or becomes payable at any point. The family member should probably take advice too.

Namechanger2015 Wed 02-Nov-16 21:05:11

My solicitor has said we can draw up an agreement and sign it ourselves, it wouldn't need the sol to witness it etc, She knows I want/need to keep my costs down. Having said that she has just gone on maternity leave so I will ask my new one the same question.

Family member is happy to pay and is supporting me lots with the divorce process - coming to see the sol for a second set of ears, etc.

The legal bills are sent to me, I check them and then pay them but I am all out of savings now. So I'll check and pass on to family to pay for me. I'll keep a running total as will solicitor. We are at the stage of final hearing now, very little chance of settling before then.

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