Are There Fraudulent Transfers After Defendant Wins Trial

A judgment is entered in favor of the defendant and against the plaintiff.. The plaintiff files an appeal. The defendant asks whether transfers of non-exempt assets to his spouse after his win in the trial court could be attacked as fraudulent conveyances in the event he loses the appeal and the plaintiff’s case is reinstated.

I think the transfers after initial victory could be considered fraudulent conveyances if the defendant loses the appeal. The judgment in the defendant’s favor is not final until all appeals are exhausted. The plaintiff still has a viable “claim” against the defendant as long as the plaintiff maintains the appeal. In other words, the defendant is not in the clear until he defends his victory in the appellate courts. Therefore, in the event the claim is reinstated by the appellate court any transfer of non-exempt assets still could be subject to reversal if shown to be intended to avoid the plaintiff’s claims.

posted by Jonathan Alper, asset protection and bankruptcy attorney, Orlando, Florida