The Trouble with Family Loans: A R540,000 Lesson
“Family helps family in times of need” - that’s been part of human culture since long before the dawn of history but be sure to observe all legal formalities. A recent High Court decision of Herclass and Another v Herclass (2322/2021) [2022] ZAFSHC 157 provides an excellent example of the risks of not doing so. Parents lose R540,000 A daughter in the middle of a divorce borrowed R540,000 from her parents so that she could buy out her spouse’s 50% share in her house. As far as her parents were concerned it was a repayable loan, but when they had…