Concerned of TBE account I had in the past

[monique2m]

What is the name of your state? FL
After my husband lost a case, he created a tenancy by entirety- TBE joint account with me. His paycheck goes into that since then. He was spending all that TBE money for himself, either by withdrawing cash on his name only, or by transferring money from that TBE to his other personal bank account then spending from that personal bank account. I never withdraw cash or transfer to my other account from that TBE account: I did not write a single check from that TBE. This continued for almost a year but luckily the judgment creditor did not come during that time and until now.

Recently, we fully closed that TBE account, and my husband has been receiving physical paycheck from his employer and cashing it. I am still concerned if I already involved in fraudulent transfer, Florida Chapter 726, due to that TBE account we had in the past.

 

[LdiJ]

What is the name of your state? FL
After my husband lost a case, he created a tenancy by entirety- TBE joint account with me. His paycheck goes into that since then. He was spending all that TBE money for himself, either by withdrawing cash on his name only, or by transferring money from that TBE to his other personal bank account then spending from that personal bank account. I never withdraw cash or transfer to my other account from that TBE account: I did not write a single check from that TBE. This continued for almost a year but luckily the judgment creditor did not come during that time and until now.

Recently, we fully closed that TBE account, and my husband has been receiving physical paycheck from his employer and cashing it. I am still concerned if I already involved in fraudulent transfer, Florida Chapter 726, due to that TBE account we had in the past.

If the judgment creditor did not attempt to go after your husband until just now, then I don't see how he could be in trouble for that account, let alone you.

 

[monique2m]

The judgment creditor sent indications that he will come soon, and it is just a matter of time (there was a serious illness and death in his family and that is why he did not come for almost an year).

 

[zddoodah]

Nothing in your post speaks to a fraudulent transfer, so I'm not really sure what your concern is.

 

[Ohiogal]

Oh for crying out loud. YOUR husband and the creditor have both posted here about this.
https://forum.freeadvice.com/threads/is-it-fraudulent-transfer.661306/
https://forum.freeadvice.com/threads/debtor-changed-joint-bank-account.661188/

I seriously think the three of you are trolling this site.

 

[Just Blue]

Oh for crying out loud. YOUR husband and the creditor have both posted here about this.
https://forum.freeadvice.com/threads/is-it-fraudulent-transfer.661306/
https://forum.freeadvice.com/threads/debtor-changed-joint-bank-account.661188/

I seriously think the three of you are trolling this site.

Good catch.

 

[monique2m]

Oh for crying out loud. YOUR husband and the creditor have both posted here about this.
https://forum.freeadvice.com/threads/is-it-fraudulent-transfer.661306/
https://forum.freeadvice.com/threads/debtor-changed-joint-bank-account.661188/

I seriously think the three of you are trolling this site.

Thanks for highlighting those threads but I am in a different situation than those two.

 

[Ohiogal]

Thanks for highlighting those threads but I am in a different situation than those two.

Not seeing it. Seems like pretty much the exact same situation but told from the spouse's perspective.

 

[monique2m]

My goal is to get an advice not to make an argument against your view about similarities with past questions posted. If there is any potential answer to my question, please let me know.

In summary, my question is whether a non-debtor spouse will be held responsible (for fraudulent transfer) for a TBE account opened after the judgment, and the TBE account is/was fully funded by the debtor spouse alone, and fully spent by the debtor spouse alone.

 

[monique2m]

I have seen a case https://casetext.com/case/regions-bank-v-mdg-lake-trafford-llc-in-re-mccuan-2 which is some what related to this but I am still confused about my situation in this TBE matter.

 

[quincy]

My goal is to get an advice not to make an argument against your view about similarities with past questions posted. If there is any potential answer to my question, please let me know.

In summary, my question is whether a non-debtor spouse will be held responsible (for fraudulent transfer) for a TBE account opened after the judgment, and the TBE account is/was fully funded by the debtor spouse alone, and fully spent by the debtor spouse alone.

Did you read the other (eerily similar) threads linked to by Ohiogal? You should be able to find the answer to your question there.

Based strictly on what you have said here about your situation, the answer to your question is “unlikely.”

edit to add: You and your husband should review all facts with an attorney in your area.

 

[Taxing Matters]

Recently, we fully closed that TBE account, and my husband has been receiving physical paycheck from his employer and cashing it. I am still concerned if I already involved in fraudulent transfer, Florida Chapter 726, due to that TBE account we had in the past.

I think it will help to understand how state fraudulent conveyance/transfer statutes work. I'm simplifying a bit here, but the basic idea is that when a debtor has assets and transfers those assets to put them beyond the reach of creditors that he has at the time of the transfer creditors can use the fraudulent conveyance/transfer laws to reverse the transfer and get the asset back to the debtor, after which the creditor can then attach the asset to pay the debt.

In some circumstances transfers of your husband's assets to TBE ownership with you at a time when he owes debts may be a fraudulent conveyance, and similarly transfers from him to you at a time when he owes debts may be a fraudulent conveyance. All that means is that the creditor could then require that the asset be returned to your husband from the TBE account (or from you as the case may be) so that the creditor can get its hands on the asset to pay the debt.

You said that the TBE account was closed and that prior to closing the account all the money had been spent on stuff for your husband. So there isn't anything left in the TBE account for a creditor to get, you aren't holding any of that cash either, and thus the fraudulent conveyance statute would not help the creditor here. There isn't any one holding the asset that the creditor would allege was fraudulently conveyed and thus no asset to return to your husband for the benefit of the creditor.

And putting the paychecks into the TBE account may not have even been a fraudulent conveyance in the first place. At least part of his pay would have been exempt from attachment under federal and Florida law, and it may be that ALL of the pay check was exempt from attachment. Assets exempt from attachment are not subject to being claimed under a fraudulent conveyance statute in the first place.

So I don't see that there is anything to worry about with respect to the pay that he put in that now closed TBE account.

 

[Ohiogal]

I think it will help to understand how state fraudulent conveyance/transfer statutes work. I'm simplifying a bit here, but the basic idea is that when a debtor has assets and transfers those assets to put them beyond the reach of creditors that he has at the time of the transfer creditors can use the fraudulent conveyance/transfer laws to reverse the transfer and get the asset back to the debtor, after which the creditor can then attach the asset to pay the debt.

In some circumstances transfers of your husband's assets to TBE ownership with you at a time when he owes debts may be a fraudulent conveyance, and similarly transfers from him to you at a time when he owes debts may be a fraudulent conveyance. All that means is that the creditor could then require that the asset be returned to your husband from the TBE account (or from you as the case may be) so that the creditor can get its hands on the asset to pay the debt.

You said that the TBE account was closed and that prior to closing the account all the money had been spent on stuff for your husband. So there isn't anything left in the TBE account for a creditor to get, you aren't holding any of that cash either, and thus the fraudulent conveyance statute would not help the creditor here. There isn't any one holding the asset that the creditor would allege was fraudulently conveyed and thus no asset to return to your husband for the benefit of the creditor.

And putting the paychecks into the TBE account may not have even been a fraudulent conveyance in the first place. At least part of his pay would have been exempt from attachment under federal and Florida law, and it may be that ALL of the pay check was exempt from attachment. Assets exempt from attachment are not subject to being claimed under a fraudulent conveyance statute in the first place.

So I don't see that there is anything to worry about with respect to the pay that he put in that now closed TBE account.

Did you read the other threads @Taxing Matters

 

[quincy]

Did you read the other threads @Taxing Matters

Taxing Matters wrote many of the posts in the other two threads. Said the same thing he is saying now.

 

[Taxing Matters]

Did you read the other threads @Taxing Matters

Yes, and while similar, there are some differences in this situation from those. So I don't assume that it's the same person asking about the same thing. Rather, I think that after the first thread, Google is now serving up this forum as a reference for Florida debtors with fraudulent conveyance questions, thus resulting in more of these kinds of posts.