If a judgement debtor transfers a deed to a spouse in an attempt to hide an asset, can I sue the spouse?

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If a judgement debtor transfers a deed to a spouse in an attempt to hide an asset, can I sue the spouse?

For additional monetary damanges?

Asked on February 3, 2011 under Bankruptcy Law, Oregon

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Well, you can name them both in an action for fraud and fraudulent conveyance when you move to set aside the transfer, which is how you should handle the matter.  Depending on when the transfer was made you may indeed succeed.  For example, transfers made after a lawsuit was started against the debtor is a pretty good indication to a Judge that the debtor was attempting to make themselves judgement proof to avoid paying a judgement rendered against them.  Is this what happened here?  You can see if the statute in your state allows you to ask for additional damages because of the fraud (punitive or treble damages).  Good luck to you.


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