What are my grandson's options for recouping down payment in a divorce?

Full question:

<p>My grandson and his legal wife purchased a home together via contract in her name as he has some child support issues pending. $8,000 down payment money was provided by family of grandson with $2000 provided by wife's family. Both have been paying contract now for approx 4 years, but it looks like they are heading for divorce.</p> <p>With the contract in her name what are his options concerning recouping at least the down money if she sells the property? Financial documents can be obtained attesting to this money if necessary. Can we file an injunction to stop a sale without this reimbursement?

• Category: Injunctions
• Date: 04/07/2025
• State: Utah

Answer:

The options for your grandson depend on whether the down payment was a gift or a loan. To obtain an injunction to stop the sale, he must show that money damages won't adequately address the harm caused by the sale. Typically, when a divorce is filed, a temporary restraining order may be issued to maintain the status quo and prevent the sale of marital assets. However, this is usually granted to the spouse filing for divorce, not to creditors.

If your grandson's family provided the down payment as a loan, he could file a complaint for breach of contract to recover the owed amount. If successful, he may obtain a judgment that could lead to a lien on the property, making it harder to sell until the lien is satisfied.

In Utah, which follows equitable division laws, property division isn't necessarily equal. Gifts to a spouse are generally considered separate property, but if the funds were used for mutual benefit, they may be treated as marital property. If the down payment was a loan, the court will determine how debts are to be managed based on fairness and the specific circumstances.

I recommend consulting a local attorney who can review all relevant facts and documents.