15 Dec 2010 02:01 UTCWed 15 Dec 2010 - 2:01 am UTC
Hi everyone, and thanks for viewing my question. I have a situation where a girl I'm seeing is in some serious financial trouble and I wanted to help her out of it by lending her a significant amount of money before the Christmas rolls around-- to the tune of $5,000 USD.
I was wondering if there was a recommended process or way to go about this, or at least a specific type of document or loan agreement (as informal as possible) that I could have her sign that would hold up in court-- I want to help her, but I don't want to get burned later on if things don't work out between us.
Also, I have no idea how to offer this idea to her without looking like a jerk, so any advice on that aspect would be appreciated as well... perhaps tips/methods on bringing up the topic of prenuptial agreements would be a start? :)
I need to get answers on this ASAP-- time is of the essence! Not sure what details you would need... we both live in NY. Thanks for all of your help, everyone.
15 Dec 2010 04:47 UTCWed 15 Dec 2010 - 4:47 am UTC
This advice from "FindLaw" underscores the importance of putting the terms of any loan, including a personal one such as you're contemplating, in writing, and also provides a justification you might use if she objected to signing a document:
"Loaning money to family and friends can be a delicate subject, so always protect yourself by putting the terms of the loan in writing. Promissory notes are documents that contain the terms of a loan so that there is a legally actionable record of the loan specifics.
"If your friends and family take offense at the suggestion that you create a promissory note, an easy way to justify it is to explain that the loans can have tax consequences and you simply need a written record in case the IRS ever audits you."
So - if you decide you want to prepare a promissory note to have on your person, you have several options. There are some online available for free, like this:
Or you can purchase a customizable form with some guarantees as to its enforceability in court. This one has fees ranging from $12 to over $37:
Would these kinds of resources be in line with what you're looking for?
20 Dec 2010 23:41 UTCMon 20 Dec 2010 - 11:41 pm UTC
I trust the information provided meets your needs. If not, or if you require any further assistance, please feel free to request clarification.