The Ontario Court of Appeal recently opinioned in the decision of Rados² on parental gifts and loans. See our blog titled “Loans from Parents”.
One principle for all to recognize is that when your parents give you money that is not spent upon acquiring a matrimonial home or comingled with your now estranged spouse, simply treat the money as a gift and it is a 100% exclusion under the Family Law Act. You do not have to share it with your estranged spouse. Do not argue that it is a loan for reasons canvassed in another blog. If the money is transferred from parent to child and invested in the matrimonial home such as by reducing an outstanding mortgage, then the loan issue can be re-examined.