Does anyone know from a legal stand point....the burden of proving if something was a gift vs. a loan falls where? I spoke with an attorney today and stated that if someone gave me money, the courts would automatically consider this a loan, even without any documentation stating so. You would have to prove it was a gift. Anyone with a legal insight on this?
Well, I don't know the burden but I do remember that the statute of frauds states that any debt over $500 must be in writing. If it's for a lot of money, you may need an atty if you get sued.
It depends on the relationship of the person.. if it is a boyfriend/girlfriend a judge will consider this a gift in most instances, but anyone else they will assume it is a loan. Really the best way I have seen people prove it is a loan, is if the other party made at least one payment and later claimed it was a gift. Judge will see through that.
