Everything You Need to Know

Under Australian common law, any capital transferred from a parent to an adult child is automatically presumed to be an unconditional gift, unless a formal legal document proves otherwise. This doctrine is called the Presumption of Advancement.

It matters because without proper documentation, your loan can be reclassified as a gift in Family Court proceedings and pooled into the matrimonial asset pool to be divided between your child and their ex-partner. A $200,000 contribution to your child's home deposit could become a $100,000 gift to someone you barely know.

Xchqr Deeds of Loan contain specific legal clauses designed to explicitly displace this presumption, classifying the transfer as an enforceable debt rather than a gift.

Yes. An Xchqr Deed of Loan is a formal legal instrument designed to be enforceable under Australian contract law and admissible as primary evidence in Family Court proceedings.

The Deed is compiled by Documint, a specialist Australian legal document platform, and contains the specific clauses required to displace the Presumption of Advancement. When bilaterally executed by both the lender and borrower, it creates a binding contractual obligation between the parties.

For the majority of standard family loan arrangements, yes. An Xchqr Deed provides professionally structured legal documentation at a fraction of the cost and time of a solicitor-drafted instrument.

However, we recommend engaging an independent Australian solicitor in the following situations:

• The loan principal exceeds $500,000
• The borrower is involved in a business that carries insolvency risk
• The arrangement involves a blended family, step-children, or complex family structure
• The loan intersects with estate planning or a trust structure
• You have any doubt about the specific legal implications of your arrangement

We will always tell you honestly when your situation warrants professional legal advice. Our goal is to protect your capital, not to oversell our product.

Xchqr Deeds of Loan are structured with reference to several key areas of Australian law:

• Family Law Act 1975 (Cth): The primary Commonwealth legislation governing property settlement in divorce and separation proceedings
• Presumption of Advancement: A doctrine of Australian common law that our Deeds are specifically designed to displace
• Contract law: General principles of Australian contract law governing the enforceability of the bilateral loan agreement
• Evidence law: The Deed is structured to function as primary documentary evidence in legal proceedings

The Family Law Act 1975 is Commonwealth legislation, meaning it applies nationally across all Australian states and territories.

Your one-off $129.99 Asset Shield fee generates:

• A formal 16-page Deed of Loan compiled by Documint
• A permanent, immutable XC-ID reference hash uniquely identifying your Deed
• A secure bilateral borrower signing portal dispatched to your nominated borrower
• Permanent encrypted storage in your private Xchqr Vault
• Family Court ready documentation with Presumption of Advancement displacement clauses

Treasury Membership at $14.99 per month extends your Asset Shield with ongoing lifecycle management:

• Deeds at the member rate of $79.99 (save $50 per deed versus standalone)
• Bank-direct repayment monitoring via Plaid, connected to the borrower's bank account
• A living immutable repayment ledger showing every repayment, bank-verified
• Automated repayment reminders sent to the borrower
• X-Score credit portability shareable with mortgage brokers and lenders
• Multi-deed family management and estate-ready export reports
• Priority support

Treasury Membership can be cancelled at any time with effect from the end of the current billing period.

Yes. Xchqr supports three repayment structures:

• Standard amortisation: Fixed monthly or weekly repayments of principal and interest
• Interest-free: Principal repayments only, with zero interest rate
• At-call: No scheduled repayments — the loan is repayable on demand by the lender

An interest-free or at-call arrangement documented in a formal Deed is still fully protected. The absence of interest does not affect the legal enforceability of the loan or the effectiveness of the Deed in displacing the Presumption of Advancement.

Note: If the borrowed funds will be used for income-producing purposes (e.g. an investment property), there may be ATO implications for interest-free arrangements. We recommend consulting a registered tax agent in that scenario.

The Deed is not legally executed until both parties complete the Execution Declaration. If the borrower refuses or fails to sign, the Deed exists in your Vault in an unsigned state and does not yet carry its full legal weight as a bilateral instrument.

You can resend the signing invitation from your Vault at any time. We recommend having the conversation with the borrower before initiating the process to confirm they are willing to sign.

If a borrower refuses to sign entirely, the honest answer is that no documentation platform can force execution. In that situation, you may wish to reconsider the lending arrangement or seek legal advice about your options.

The XC-ID is a permanent, cryptographic reference hash generated at the moment your payment is processed. It uniquely identifies your specific Deed of Loan and serves as tamper-proof evidence that the Deed existed at that point in time with those specific parameters.

Once generated, the XC-ID cannot be altered, deleted, or reassigned. Even if someone claimed a Deed had been backdated or modified, the XC-ID hash provides independent verification of the Deed's contents and creation timestamp.

In legal proceedings, the XC-ID functions as primary evidentiary documentation of the loan's existence and original terms.

When your child separates from their partner, the Family Court assesses the total net asset pool to be divided between the parties. An executed Xchqr Deed classifies your outstanding loan as a strict liability of the borrower, meaning the principal must be deducted from the borrower's assets and returned to you before any division occurs.

The immutable XC-ID hash and repayment ledger serve as primary evidentiary documentation in proceedings. The Deed's explicit Presumption of Advancement displacement clauses directly address the most common argument used against parents in these situations — that the transfer was a gift.

Yes. This is one of Xchqr's most valuable and underappreciated use cases.

When different children receive different amounts of parental support over the years and none of it is formally documented, estate administration becomes enormously complicated. Executors face impossible questions about what was a loan, what was a gift, what should be offset against inheritance.

An Xchqr Deed for each loan creates an immutable single source of truth. Each child's outstanding balance is clearly documented. Executors can offset loans against inheritances cleanly and transparently. Sibling disputes are resolved before they begin because the records speak for themselves.

This argument can still be raised but it becomes extremely difficult to sustain against a properly executed Deed. A formal Deed of Loan with explicit Presumption of Advancement displacement clauses, bilateral signatures, and an immutable XC-ID hash is strong primary evidence that the arrangement was a loan.

Courts may still exercise discretion in assessing all the circumstances, but the existence of a properly executed Deed transforms your evidentiary position from near-certain loss (no documentation) to genuine legal protection.

If the Treasury Membership repayment ledger also shows a history of bank-verified repayments, the argument that the arrangement was a gift becomes even harder to sustain.

Yes, and we strongly encourage you to do so rather than leaving an existing loan undocumented. An Xchqr Deed can be generated and executed at any point during the life of a loan.

However, it is important to understand that courts give more weight to documentation that is contemporaneous with the original transfer. A Deed executed five years after the loan was made is better than no Deed at all, but it carries less evidentiary weight than one executed at the time of transfer.

If you have already transferred funds without documentation, act now rather than waiting. The sooner the Deed is executed, the stronger your position.

Yes. Xchqr Deeds of Loan are based on Commonwealth family law under the Family Law Act 1975 (Cth), which applies nationally across all Australian states and territories. The Presumption of Advancement is a doctrine of Australian common law, not state law.

Our documentation is effective whether you are in New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, the ACT, or the Northern Territory.

In most Australian states, loan agreements between private individuals are not subject to stamp duty. However, stamp duty rules vary by state and territory and are subject to legislative change.

We recommend confirming the current position with your state revenue office or an accountant if you have any concern about your specific situation. Xchqr does not provide tax or stamp duty advice.

Yes. The Deed of Loan documents the loan arrangement itself, not the underlying property. Commonwealth family law governs how loans between family members are treated in property settlement proceedings, regardless of which state the property is located in.

If your situation involves property-specific legal considerations — for example, where the loan relates to a property subject to a complex ownership structure — we recommend discussing those specifics with a solicitor practising in the relevant jurisdiction.

Yes, in certain circumstances. The ATO expects genuine loans between family members to be documented in writing with clear repayment terms, and actually repaid according to those terms.

For loans where the borrowed funds are used for personal purposes (such as buying a home to live in), an interest-free arrangement generally has no adverse tax consequences for either party. Where the funds are used for income-producing purposes — such as an investment property or business — the position becomes more nuanced.

Division 7A of the Income Tax Assessment Act 1936 primarily applies to loans from private companies to shareholders, not to loans between individuals. However, if your family uses a company or trust structure, professional tax advice is essential before any funds move.

A formal Xchqr Deed satisfies the ATO's expectation of written documentation and removes any ambiguity about the nature of the arrangement.

Your Xchqr Vault is private and encrypted. Only you, the lender and account holder, have access to the full Deed and repayment ledger. The borrower receives only the specific signing portal link for their transaction and cannot access your Vault or any other records.

Xchqr does not share or sell your data. All documents are stored with permanent immutability — once executed, a Deed cannot be altered. Data is encrypted at rest and in transit. Xchqr is 100% Australian-owned and operated.

Your Vault and all executed Deeds remain fully accessible if you cancel Treasury Membership. Cancellation only affects the ongoing services included in the membership — repayment monitoring, automated reminders, and X-Score updates cease at the end of your billing period.

Your Deeds are stored permanently regardless of your membership status. The XC-ID hash is immutable and permanent. You will always be able to access and download your executed Deeds.

Executed Deeds cannot be deleted. This is by design. An executed Deed of Loan is a legal instrument and its permanent, immutable storage is what gives it evidentiary value. A document that can be deleted could also be argued to have been altered or fabricated.

Unexecuted Deeds (where the borrower has not yet signed) can be cancelled from your Vault.