Verbal loan agreement with parents

Help. I am going round in circles and up against it with my ex and my parents.

Married 11 years - 1 child aged 7 - parents live with us - I only have a small part time salary -
My parents live with us and gave us loans of £300k to buy extra land and do work on the house, including an extension. This was a verbal agreement, although the amounts where transferred to my husbands account, with 'loan' as the reference, so we could keep track of the amounts. And the audit trail would show the money coming from them and then out to various solicitors and contractors etc. So I do have a paper trail via bank statements if needed. Just no written signed loan agreement. It was agreed that in time we would remortage the house and return the money to them. Again verbally.

We are now starting the financial stage of the divorce - and my parents are scared that they will not get their money back as they have nothing in writing per say. And are pushing me to accept an offer from my ex, which would mean I will walk away with nothing, but they would get their money back. They have another house to move to, which they want to go to ASAP. I would prefer to get a mediator involved to go through the financials in a fair way. The house has a small mortgage, due to their loan and the sale would cover their loan, pay the mortgage off and leave around £600k in the pot. I want to assure my parents that part of sorting the finances out fairly, would include the agreement of them getting their loan money back. I have my son to think about, and walking away with nothing is scary and feel I am trapped between the devil and the deep dark sea.

Any advice would be greatly appreciated.

Has your soon to be ex said anything about this money? You may find he fully agrees it is a loan which must be repaid.

It sounds as if there is an audit trail to suggest it was always intended as a loan. Is there anything else, such as evidence of some repayments?

The problem in these situations is that usually the money given is really a gift. It only becomes a “loan” when divorce proceedings start and the courts see straight through it and aren’t interested.

In your case it looks as if you can evidence that it truly is a loan. The more evidence you can collate the better.

Hi

Yes He has agreed its a loan and needs to be paid back. As was always intended. He has offered to pay this back to my parents, and a loan I have for my business of £50k and 'allow' me and my son to live in the summer house, which is nice, but only a temporary wooden building . And if I leave I have to leave it to him. This really is not a long term place to live. My parents think this is a good offer - since they get their money back. And I walk away with no debt. But I also walk away with no permanent home, and no share of the family home.

Main priority of a court will be housing children.
What your ex is suggesting clearly doesn’t work so he, and your parents, are going to need a reality check.

You need to post details of all assets and incomes.

How much is a two bed house to buy,or if needs be rent,in your area?