Quote:
Originally Posted by kstarnes
INAL (I'm not a lawyer), but in specific cases the issue of "fraudulent conveyance" may apply if you are selling or transferring assets to another party to avoid collection or liquidation of that asset by someone who has a known potential or pending claim against you.
FWIW.
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Sure, it could technically be a fraudulent conveyance, but so what?
Say you have a $2 million house (like snowman!), owned outright.
You are getting sued for 100 million. The plaintiff isn't quick enough to get a lien or anything on it, so you list it for $1.5 million through a broker, some guy comes along and buys it, you close and get the cash.
Now the cash disappears.
What's the creditor going to do when he gets a judgment a year or two from now?
A fraudulent conveyance only really works when you can sue the transferee, i.e., the person who took the asset. Like if you had a house and you transferred it to your mom.