Questions about separate vs community property and debt

[Whoops2u]

Just because funds go to a place that mixes with other funds does not mean commingling has occurred as a legal concept. If only separate funds were going into a house community funds put a down payment on, it would be an easy problem to see where the funds are applied. It is where you can't tell which funds/amounts go where when the legal concept comes in that defaults everything to community funds. Even if the personal injury amount was considered, in part, separate assets, then the court could determine how much the community owns, how much is owned by the OP and how much must be reimbursed.

The "loan" is the problem. Loan is in quotes because of the nature, and convenience, of how the facts are laid out. Let's start with the obvious; it stinks. Most of us do not win a lottery where our parents support our family if we are hurt. Those that do recognize it is not a profit-making intent of a loan but a loving intent of a gift. It will be hard to get over the hurdle of doubt most people would have in such a situation. One thing that will be against claiming a loan to closely-related members will be the tax treatment. Did parents book the imputed interest on the loan as income?

If so, /u/ScottGunn may have some good evidence on backing up the claim it was a loan. People don't pay extra in taxes just so they can hurt the STBEX at some hoped for and imagined divorce a decade in the future.

 

[PayrollHRGuy]

However, without knowing anything about this "open ended" agreement, none of us can really comment on its validity.

Oh it isn't my position that the agreement is worth the paper it is printed on but it certainly rises above the level of "You have nothing in writing, no loan agreement, no repayment agreement, nothing."

@stealth2 Yes you did. And yes he does.

 

[HRZ]

The loan might even be worth less than the paper it is printed upon ...OP , other than the loan...how much income do you have per year ...and do your parents provide more than 1/2 of your support...counting these "loans" as support ???