When Parents Give Financial Support: Who Gets the Credit in Family Law Property Settlements?

A recent case of Yeng & Sun [2025] FedCFamC1A 106 reiterates the law as to how parental gifts are treated in family law property settlements - and why the intention behind those gifts really matters.

When a parent gives money to a couple during a marriage or de facto relationship, it can lead to disputes about who the contribution was really for.

In Yeng & Sun, the husband’s parents had provided approximately $5 million during the course of the relationship. At first instance, the trial judge found that this money was a joint contribution to the relationship - meaning both the husband and wife were credited equally for it in the division of property.

The husband appealed, arguing that the funds were contributed by his parents to him alone.   The wife argued that it could be inferred that the money was intended as a gift to both of them.

On appeal, the Court found in favour of the husband. The Full Court held that, in the absence of clear evidence that the husband’s mother intended the $5 million to be a gift to both parties, it was not reasonable to treat the money as a joint contribution. Instead, the contribution should have been attributed solely to the husband.

This case reinforces the importance of evidence in establishing the intention behind financial contributions from parents. There is a presumption at law that the child who received the benefit from the parent would receive recognition of the contribution. To rebut this presumption, it is essential to be clear – and ideally have documentation – about whether those funds were intended for just one or both of you.

At Moran Family Law, we help clients navigate complex property settlements and ensure that contributions - whether financial or non-financial - are properly recognised. If you’re separating and concerned about how gifts or financial help from family may be treated, we’re here to help.

Disclaimer: This article is for general information only and does not constitute legal advice. Every family situation is different. If you need advice about your specific circumstances, you should speak to a family lawyer. You can contact Moran Family Law for advice tailored to your situation.