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The Divorce Encyclopedia
Fraudulent Conveyance


Term Definition Fraudulent Conveyance - the transfer of an asset out of a debtor’s name to keep it from the reach of a creditor.
Application in Divorce The fraudulent transfer of an asset to avoid a credit is most often seen in bankruptcy actions. The conveyance is made by the debtor to avoid some duty or debt incumbent upon the person.

A conveyance may be fraudulent if it happens with a certain time before a lawsuit or bankruptcy, and a court can order it undone if it is deemed fraudulent.

In divorce actions, fraudulent conveyance is a form of economic misconduct and may become criminal.

Resources: Bankruptcy Code § 548.

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