Who thinks about money while at a high point in a romantic relationship? In many, if not most serious relationships, partners freely give each other financial assistance. For example, a girlfriend helps her boyfriend to buy a new car. The boyfriend may lend a hand when his significant other is short on rent money. In the event of a break-up, however, issues of money can often return to the forefront. They come together with the emotional turmoil that the end of a relationship brings. It is essential to know that if you can’t resolve a financial dispute with your ex-partner informally, it is possible to escalate the matter to the Small Claims Court.

What you need to make an ex-partner pay

It is quite possible, under certain circumstances, to recover money given to former partners in the Small Claims Court.  To do so, the plaintiff must prove the following:

1. That he or she actually gave money to the defendant.
2. That he or she was not in debt to the defendant, and the money was not a repayment of the debt.
3. That there is no “presumption of advancement of money” or the intention to use the money for mutually beneficial purposes. This presumption exists in a limited set of circumstances. For example, there is usually such a presumption between spouses. However, it rarely exists when individuals are dating.

Defences to an ex-partner’s claim

The most common defence to a claim to collect money that an ex-partner gave to another ex-partner is that the money was a gift and not a loan. To succeed with this defence, the defendant must demonstrate the following:

1. The ex-partner had the clear intention to donate the money or give a gift.
2. He or she actually delivered the money to the defendant, and 
3. The defendant accepted the money as a gift.

Evidence of “gift.”

• It must be noted that it is relatively difficult to prove that the money was a gift and not a loan.
• In most cases, saying, “she told me it’s a gift” is insufficient evidence of intention to donate.
• Courts are of the view that monies transferred between persons are loans unless there is overwhelming evidence to the country.
• As stated in Murray v Toth, “public policy demands that such casual passing of monies should be repayable unless there is satisfactory evidence to show that it was not intended by both parties to be repaid.”

To sum up, you may often recover the money you have given to your former partner through the Small Claims Court should the relationship go sour. Needless to say, this can be very helpful in addressing unfairness that results from the end of a one-sided relationship. Please get in touch with us if you need help.