Interests on the loans to my son and wife

[ShyCat]

In fact, this is the only income I earned in my life.

You "loaned out" all the money you ever earned in your life? Gee, that's not suspicious.

 

[truthman]

“Marital income is JOINT income between spouses. You have issues in declaring it a loan.” It can be marital income. I read somewhere that even items purchased to be used in the home, after the marriage, will be treated as tenancy by entirety. However, I need money for my treatment, and by getting that money back, I will clean my wife and son from possible fraudulent transfer claims.


“You loaned out all the money you ever earned in your life?.” My wife donated her kidney when I had health issues. My son stopped going to college for a year when I was sick, and took care of me. We feel wherever the money is among our 3, we treat it as our money. The legal issue started when my tree fell on neighbor’s house and he sued me therefore I am trying to take it back.

I don’t want to give this fraudulent transfer issue as gift to my wife and son. That is why I am collecting it from them and then use for my treatment.

 

[Shadowbunny]

“Marital income is JOINT income between spouses. You have issues in declaring it a loan.” It can be marital income. I read somewhere that even items purchased to be used in the home, after the marriage, will be treated as tenancy by entirety. However, I need money for my treatment, and by getting that money back, I will clean my wife and son from possible fraudulent transfer claims.


“You loaned out all the money you ever earned in your life?.” My wife donated her kidney when I had health issues. My son stopped going to college for a year when I was sick, and took care of me. We feel wherever the money is among our 3, we treat it as our money. The legal issue started when my tree fell on neighbor’s house and he sued me therefore I am trying to take it back.

I don’t want to give this fraudulent transfer issue as gift to my wife and son. That is why I am collecting it from them and then use for my treatment.

I'm curious: are you shopping this story here to see how it will fly when you inevitably get hauled to court for fraudulent acts? Because so far, I don't see this ending well for you if you stick with this story. At all.

 

[Zigner]

From what I understand, the OP plans to collect and have all the "loaned" money before the other party comes looking for it. This will end up being a "no-harm, no-foul" situation, so long as the money is where it's supposed to be when it needs to be.

 

[LdiJ]

From what I understand, the OP plans to collect and have all the "loaned" money before the other party comes looking for it. This will end up being a "no-harm, no-foul" situation, so long as the money is where it's supposed to be when it needs to be.

I agree. However, I will also point out that a married couple is free to handle their collective money how they see fit, and the IRS does not have any interest in how they apportion their money between the two of them. The IRS also doesn't care how they spend their money on their children for things like education expenses and medical expenses. So the OP's concerns about the IRS are completely unwarranted.

The only potential issue that the OP has to deal with is that IF he loses the lawsuit then the judgment creditor is going to be looking for any assets that they can find to collect on the judgment...and anything that they can claw back as a fraudulent transfer.

If the OP needs to spend money on his own medical expenses (or frankly medical expenses for any family member) a court will never consider that a fraudulent transfer.

I sincerely doubt that educational expenses would ever get clawed back either. I agree that its technically possible, but I personally think its highly unlikely.

It makes sense for the OP to take back money from his wife and son if the money in question could look like a fraudulent transfer for the purpose of hiding the money from a judgment creditor...assuming that there was no valid reason for the money to be transferred.

I believe that the OP is relying far too heavily on advice from internet forums and needs to retain an attorney to advise him based on the actual details of his situation.

 

[truthman]

Thanks for your inputs again. The attorney whom I talked to was also unable to tell how this matter WILL unfold once fraudulent transfer proceedings start. However, he advised that getting back that money into my hands will defeat the following conditions in 726.105 and all conditions in 726.106 of http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0726/0726.html thereby weaken the creditor’s argument as long as we testify that these payments are in exchange to the money I transferred (even if we claim that they are gifts: exchange of equal amount gifts is also OK he said):

726.105(1) (b) ”Without receiving a reasonably equivalent value in exchange for the transfer or obligation, and the debtor..”

726.105(2)(h) “The value of the consideration received by the debtor was reasonably equivalent to the value of the asset transferred or the amount of the obligation incurred.”

Also he said that, once I receive the money back from my family, I am free to spend in the way I like, including for my treatment or "to take bath in honey I bought with that money".

Therefore I am planning to follow his advice and trying to get your knowledgeable feedback as that attorney did not say that this WILL cure the issue (he only said that it is very much possible, but no one knows what the judge will do on that specific day).

Shadowbunny “Because so far, I don't see this ending well for you if you stick with this story. At all.” Could you explain why this may not end well?