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One common dispute involves whether money given to a friend or neighbor was a loan or a gift. The key factor in demonstrating this is documentation, such as written contracts or understandings. Although it may feel artificial, it’s essential in modern transactions. A practical approach is to send a text to confirm the agreement, stating the amount and repayment terms. For example, a message could specify, "I lent you $6,000 to be paid back in three months." If the borrower acknowledges this text, it provides a clear record, while a lack of acknowledgment may lead to perceptions that the description was self-serving. Proper documentation helps clarify intentions in financial dealings.
