Family Loan Agreements.

Legal Advice for Family Loans and Financial Support

We help individuals document financial arrangements with family members to reduce risk, protect relationships and ensure expectations are clear from the start.

Why Documenting Family Loans Matters

Family loans can become complicated when:

• Expectations are not clearly agreed

• Repayment terms are informal or misunderstood

• Circumstances change over time

A written agreement helps avoid conflict and sets out what both sides expect. It also protects everyone involved if the situation changes later.

What We Can Help With

We advise on:

• Drafting family loan agreements

• Setting out repayment terms and any interest

• Including appropriate security or conditions

• Managing situations where gifting is involved, such as for home deposits or support

We help you put clear terms in writing so everyone understands the arrangement and how it will work in practice.

Tailored to Your Situation

We work with families in many contexts, including:

• Helping children buy their first home

• Supporting business or education opportunity

• Providing temporary financial help during a difficult time

Our advice is practical and tailored to your family’s circumstances, helping you record the arrangement clearly and avoid future misunderstandings.

Where We Work

Our private client team is based in Wellington, Lower Hutt and Masterton. We assist clients across the Wellington region, Hutt Valley, Wairarapa and throughout New Zealand with advice on family loans, gifting and related property matters.

Questions We Often Get Asked About Family Loans and Financial Support

Why should family loans be documented in writing?

Yes. A written agreement sets out how much was lent, any repayment terms and interest, and what happens if circumstances change. Without one, disputes can arise later about what was agreed. We help prepare or review documents to prevent problems before they occur.

What is the difference between a loan and a gift?

A loan involves an obligation to repay, while a gift does not. Clearly defining the intention at the start avoids confusion or legal disputes later, particularly if the arrangement involves a home purchase or inheritance expectations.

Can a family loan affect my relationship property?

Yes, it can. If a loan or gift is made during a relationship, it may be considered relationship property unless properly documented. We explain how to protect the contribution and what evidence to keep.

What happens if someone does not repay a family loan?

If a family member does not repay the money as agreed, you may be able to recover the debt through discussion or by making a claim in the Disputes Tribunal, which can hear claims up to $30,000. For larger amounts, the matter may need to go to the District Court. We can explain your options and help you decide on the best way to move forward.