Is it fraudulent transfer?

[PayrollHRGuy]

Actually, he did. He transferred wages, which were his sole asset, to a bank account held as tenancy by the entirety (TBE). Assets held TBE are not the asset of either the husband or the wife but are an asset of the marital unit.

Would not the same be said if he had brought the money home and hid it under the bed which just happens to be the same place his spouse hides money?

 

[denkal]

(A). My salary had been continuously and consistently deposited into TB account only, since 2010 (or much earlier) until 2020.

(B). I lost the case in 2015.

(C). In early 2020, due to some theft, I lost signed checkbooks, social security numbers were lost and leaked. That’s why I closed that TB account to stop further harm. My wife was also seriously sick at that time and cannot come to a bank or do anything. Therefore, I TEMPORARILY opened a single account on my name for 3 months into which my salary was deposited just for those 3 months. My wife is willing to support these.

(D). After 3 months, once I resolved the issue of theft and social security numbers’ issue, I opened a TBE account with my wife (with the same bank where the earlier TB account was closed) and my salary get deposited into that new TB account since then.


Taxing matters mentioned “Also, Florida's fraudulent conveyance statutes are a bit complex and are broken down broadly into two significant categories: transfers that occur when the debtor is insolvent (such as the case I cited above) and transfers that are done with an intent to hinder, delay, or defraud a creditor. The former circumstance is easier for a creditor to prove a fraudulent conveyance.”

Unfortunately, I am insolvent, since 2015, after the judgment was announced. Therefore Taxing Matters’ statement “The former circumstance is easier for a creditor to prove a fraudulent conveyance” is true here thereby the following law is applicable to me as I did not receive anything back from my wife and I was and am insolvent since 2015:

“726.106 Transfers fraudulent as to present creditors.—
A transfer made or obligation incurred by a debtor is fraudulent as to a creditor whose claim arose before the transfer was made or the obligation was incurred if the debtor made the transfer or incurred the obligation without receiving a reasonably equivalent value in exchange for the transfer or obligation and the debtor was insolvent at that time or the debtor became insolvent as a result of the transfer or obligation.”


My query is whether the above paragraphs (A) to (D), specifically Paragraph (C) above, will not help me in any manner? I made a transfer of my salary deposit (i). from a TB to my single account for 3 months as temporary arrangement then (ii). came back to the old state (where my salary is deposited to a (new) TB account from that temporary single account). Whether the court considers only (ii) and will not consider (i)?

 

[Zigner]

(A). My salary had been continuously and consistently deposited into TB account only, since 2010 (or much earlier) until 2020.

(B). I lost the case in 2015.

(C). In early 2020, due to some theft, I lost signed checkbooks, social security numbers were lost and leaked. That’s why I closed that TB account to stop further harm. My wife was also seriously sick at that time and cannot come to a bank or do anything. Therefore, I TEMPORARILY opened a single account on my name for 3 months into which my salary was deposited just for those 3 months. My wife is willing to support these.

(D). After 3 months, once I resolved the issue of theft and social security numbers’ issue, I opened a TBE account with my wife (with the same bank where the earlier TB account was closed) and my salary get deposited into that new TB account since then.


Taxing matters mentioned “Also, Florida's fraudulent conveyance statutes are a bit complex and are broken down broadly into two significant categories: transfers that occur when the debtor is insolvent (such as the case I cited above) and transfers that are done with an intent to hinder, delay, or defraud a creditor. The former circumstance is easier for a creditor to prove a fraudulent conveyance.”

Unfortunately, I am insolvent, since 2015, after the judgment was announced. Therefore Taxing Matters’ statement “The former circumstance is easier for a creditor to prove a fraudulent conveyance” is true here thereby the following law is applicable to me as I did not receive anything back from my wife and I was and am insolvent since 2015:

“726.106 Transfers fraudulent as to present creditors.—
A transfer made or obligation incurred by a debtor is fraudulent as to a creditor whose claim arose before the transfer was made or the obligation was incurred if the debtor made the transfer or incurred the obligation without receiving a reasonably equivalent value in exchange for the transfer or obligation and the debtor was insolvent at that time or the debtor became insolvent as a result of the transfer or obligation.”

My query is whether the above paragraphs (A) to (D), specifically Paragraph (C) above, will not help me in any manner? I made a transfer of my salary deposit (i). from a TB to my single account for 3 months as temporary arrangement then (ii). came back to the old state (where my salary is deposited to a (new) TB account from that temporary single account). Whether the court considers only (ii) and will not consider (i)?

TALK TO AN ATTORNEY

Yes, really.

 

[denkal]

Thanks, I understood the situation. Will do.

 

[Taxing Matters]

Would not the same be said if he had brought the money home and hid it under the bed which just happens to be the same place his spouse hides money?

No. Hiding property in the same place as your spouse hides her property does not itself result in a transfer. In that case the cash is presumably still his cash and the creditor could take it to satisfy the debt. After all, that pile of cash under the bed is not TBE property. If he transferred the cash to his spouse, though, that may then result in a fraudulent transfer. Similarly, a transfer to a TBE account with his spouse may result in a fraudulent transfer. Remember, a TBE account is something separate; it is not an asset of either spouse