What Happens When a Party Claims they Borrowed Money from a Friend or Family Member | Episode 95

What Happens When a Party Claims Borrowed Money in a Colorado DivorceIn this episode of Divorce at Altitude, Ryan Kalamaya dives into the complex issue of when one party in a Colorado divorce claims that they borrowed money from a family member or friend, particularly in relation to large marital assets like a home. Using the example of Eric and Melanie Wolf, Ryan explains how the court will evaluate whether a claimed loan, such as a down payment for a home, is a legitimate debt or a gift.The episode covers key factors courts consider, including whether there was a written agreement, interest charged, payments made, and whether collateral was involved. Ryan also discusses how these factors are influenced by IRS guidelines and how Colorado courts adopt them in divorce cases.Episode OutlineWhat is a Loan vs. Gift? Ryan explains the legal difference between a loan and a gift in divorce cases and how courts evaluate claims of borrowed money.Factors That Influence the Court’s Decision The court considers multiple factors, such as written agreements, interest charged, and payments made to determine whether money is a legitimate debt or a gift.The Role of Collateral and Promissory Notes Ryan discusses how a promissory note or collateral, such as a deed of trust, affects the legitimacy of a loan in a divorce proceeding.When the Court Considers Statute of Limitations Ryan explores how the statute of limitations can impact the enforceability of a loan claim, especially if no payments have been made.Jurisdictional Issues in Divorce vs. Separate Legal Actions He explains when the divorce court has jurisdiction over loan claims and when separate legal action may be necessary.Loans Forgiven After Divorce Ryan touches on situations where loans are later forgiven and the complexities this introduces into the divorce proceedings, particularly when dealing with family loans.What is Divorce at Altitude? Ryan Kalamaya and Amy Goscha provide tips and recommendations on issues related to divorce, separation, and co-parenting in Colorado. Ryan and Amy are the founding partners of an innovative and ambitious law firm, Kalamaya | Goscha, that pushes the boundaries to discover new frontiers in family law, personal injuries, and criminal defense in Colorado. To subscribe to Divorce at Altitude, click here and select your favorite podcast player. To subscribe to Kalamaya | Goscha's YouTube channel where many of the episodes will be posted as videos, click here.  If you have additional questions or would like to speak to one of our attorneys, give us a call at 970-429-5784 or email us at [email protected].************************************************************************DISCLAIMER: THE COMMENTARY AND OPINIONS ON THIS PODCAST IS FOR ENTERTAINMENT AND INFORMATIONAL PURPOSES AND NOT FOR THE PURPOSE OF PROVIDING LEGAL ADVICE. CONTACT AN ATTORNEY IN YOUR STATE OR AREA TO OBTAIN LEGAL ADVICE ON ANY OF THESE ISSUES.