The applicant in a family law proceeding sought a certificate of pending litigation against real property after alleging that the respondent spouse transferred his interest to his parents for nominal consideration to defeat support and related financial claims.
Applying the fraudulent conveyance certificate of pending litigation framework, the court found a high probability of success on the underlying support litigation, sufficient evidence that the impugned transfer was intended to hinder enforcement, and a balance of convenience favouring preservation of the property’s equity.
The court relied on the spouse’s support arrears, lack of other meaningful assets, inconsistent evidence concerning alleged parental debts, and multiple badges of fraud.
The motion was granted and the applicant received $6,000 in costs.