In Chaudhary v Chaudhary  NSWCA 222, Vincent advanced $1,200,356.42 to his son Adrian who was married to Justine. The advances were for the purchase of a property. After the marriage broke down, Vincent demanded repayment of $1,200,000. The Court considered whether the advances constituted a loan or a gift.
The court held that the deposit was initially a gift that was conditional upon the purchase of the property, especially since the deposit was payable to the agent. However it later changed to a loan due to a subsequent agreement between Adrian and Vincent. Regarding the stamp duty, incidental costs and the outstanding purchase price, Vincent had clearly stated that these were loans. It was agreed that if the marriage broke down Adrian would have to repay the loan. This agreement was included in a clause in the mortgage. The Court ordered Adrian to pay Vincent $1,200,000 plus interest. Read full case