Should I include interest on the family loan?

In family law property proceedings, gifts of money are treated as part of the pool of assets, which means a large part (if not all) of the parent’s hard-earned money could be lost!

If you have a loan agreement and clear evidence of interest repayments, then the debt should be repaid first as part of the proceedings, before the distribution of assets takes place.

This effectively means there is a higher chance the parents can recover their loaned funds.