Hi there. Lending money to friends or family can be risky, especially if the relationship breaks down. The first step you should take is to write a letter to your boyfriend’s mother setting out the details of the loan (e.g. date, amount, method of transfer) and requesting that she repay the money by a certain date, otherwise you may take legal action against her. In legal terms, this document is called a ‘letter of demand’. You should send the letter via registered post and keep a copy for your own records.

If your boyfriend’s mother does not repay the money by the date specified in the letter, you may be able to take legal action against her. You can make a claim in the Magistrates’ Court (www.magistratescourt.vic.gov.au) for civil matters, such as loaned money that has not been repaid. To successfully make a claim against your boyfriend’s mother, you would need to prove certain things about the loan.

For example, you would need to establish that both you and your boyfriend’s mother intended the money to be repaid and that it was not a gift. You would also need to establish that you both intended to create a legally binding agreement (i.e. you were both serious about entering the agreement such that the lender would sue the borrower if they failed to repay the money). If any part of the agreement was put in writing (e.g. letter, email, text messages), this will strengthen your claim.

If you are successful in making a civil claim in the Magistrates’ Court, your boyfriend’s mother will be legally required to repay the money. If she still does not repay the money, you can commence further legal proceedings to enforce the court’s decision and recover the debt. This can be a complicated and slow process and, if your boyfriend’s mother does not have enough money to repay the debt, may not be worthwhile.

Suggested way forward

Recovering money from friends or family is possible, but it can be a slow and difficult process, especially if the relationship has broken down. You should start by sending a letter of demand and then seeking professional legal advice. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.