What happens to property when in-laws are involved?

A little background. My best friend has been married for 31 years. Her husband, I’ll call him Jay, worked for his dad’s company. Seven yrs ago, the dad sold the business leaving Jay unemployed. At first, Jay went back to school and earned his BA with hopes of a new career while living off their retirement funds. Five years later, Jay is still unemployed and his dad has been paying all their bills. My friend had always been a stay at home mom, but she did try to work during this time. But every time she got a job, Jay would make her quit because he wanted her home. She is finally fed up and told Jay she wants a divorce. She does have a job at Food Lion now but it’s not enough for her and her 2 teenage children. All she asked for was half the equity of the house. That would allow her to get a new home for her and the kids.

Yesterday, she received a certified letter from Jay’s dad saying she is to pay him 1/3 of the equity of the house by next Friday, 9/1, or he will let the house go into foreclosure and she won’t get anything. She never asked him to pay their bills and never even had a verbal agreement with him that he was paying their bills. She (& I) feel that Jay should pay him back from his portion. Not to mention, she has no money!

My questions: Does he have a legal right to threaten her like that (his name is no where on the mortgage); and does she have a legal obligation to repay him?

Assuming the marital residence is marital property (acquired during the marriage with marital funds, titled in the names of Husband and Wife), then Wife’s father in-law is not entitled to a portion of the equity. Without a formal loan agreement/note, then Wife has no legal obligation to pay back her father in-law.


Anna Ayscue

Attorney with Rosen Law Firm Cary • Chapel Hill • Durham • Raleigh • Wake Forest

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