A recent survey by real estate company Zoopla revealed that 64% of parents whose adult children own a home contributed towards a deposit.
The ‘Bank of Mum and Dad’ is well known to be a great lender with long borrowing agreements, no interest to pay and flexible repayment schedules. This arrangement can change quite suddenly, however, when the child’s marriage ends and what appeared to be a soft loan on generous terms becomes a hard debt due for repayment.
There is therefore provision within the Family Procedure Rules for third parties, like parents, to be joined to proceedings if it will assist the court in resolving the dispute.
A financial remedy order only will bind the parties to the proceedings. It can therefore be necessary to join a third party to the proceedings so they ‘intervene’ in the case.
Find out more about Trina in the 60 seconds with Trina Little article in HNW Divorce Magazine Issue 11.