Actual fraudulent transfer requires intent to hinder, delay, or defraud, established through badges of fraud. Constructive fraudulent transfer requires transfer without reasonably equivalent value while insolvent, without regard to intent.
The Uniform Voidable Transactions Act governs in most states.
Alternative Names:
Fraudulent Conveyance|Voidable Transaction
Why it Matters?
Constructive fraudulent transfer requires no proof of intent, which makes it substantially easier to establish than actual fraud where the transferor was insolvent and received inadequate consideration. Badges of fraud including transfers to insiders, retention of control, and concealment support the intent-based claim. Lookback periods extend four years in most states and longer in bankruptcy, reaching transfers well before the judgment.
Frequently Confused with
Related terms
Frequently asked questions
Which theory is easier to establish?
How far back do claims reach?
