A creditor brought a motion for summary judgment seeking to set aside a transfer of a debtor’s interest in the matrimonial home to his spouse as a fraudulent conveyance under the Fraudulent Conveyances Act.
The debtor had personally guaranteed a corporate loan and transferred his joint interest in the home to his spouse for nominal consideration during the period when the corporation was seeking loan accommodations.
The court found multiple badges of fraud, including the non-arm’s-length relationship, lack of consideration, timing of the transfer, and the effect of placing the debtor’s only significant asset beyond the reach of creditors.
The court held that the conveyance was made with intent to defeat, hinder, delay, or defraud creditors and that no genuine issue required a trial.
Summary judgment was granted setting aside the transfer as void against the creditor.