![]() (1) the relationship of the parties (2) the grantor's insolvency (3) pursuit of him by his creditors at the time (4) want of consideration (5) retention of possession of the property by the grantor and (6) fraudulent incurrence of indebtedness after the conveyance. The badges of fraud include the following: Virginia courts consequently rely upon presumptions of fraud, known as "badges of fraud," which consist of facts and circumstances that establish a prima facie case of fraudulent conveyance. In fact, "ecause of the difficulty of establishing 'actual intent,' evidence of fraud may be, and generally must be, circumstantial." In re: Porter, 37 B.R. Fraud may be proved not only by direct evidence, but also by circumstantial evidence. In a suit to set aside a fraudulent conveyance, proof of the fraudulent intent must be "clear, cogent and convincing." Hutcheson v. This section shall not affect the title of a purchaser for valuable consideration, unless it appears that he had notice of the fraudulent intent of his immediate grantor or of the fraud rendering void the title of such grantor. Section 55.1-400 – Void Fraudulent Acts Ĭode § 55.1-400, which address fraudulent conveyances, states:Įvery (i) gift, conveyance, assignment, or transfer of, or charge upon, any estate, real or personal, (ii) action commenced or order, judgment, or execution suffered or obtained, and (iii) bond or other writing given with intent to delay, hinder, or defraud creditors, purchasers, or other persons of or from what they are or may be lawfully entitled to shall, as to such creditors, purchasers, or other persons or their representatives or assigns, be void. Laches is defined as the neglect or failure to assert a known right or claim for an unexplained period of time under circumstances prejudicial to the adverse party. Under Virginia law, a fraudulent conveyance has no specific statute of limitations but is governed by the concept of laches. In general, there are many facts and scenarios which the law interprets to be signs of fraud, and from which fraudulent intent may be inferred. Case law demonstrates that a court looks at the enumerated badges of fraud similar to a totality of circumstances analysis. Pender & Coward Office Locations Office LocationsĪ fraudulent conveyance is one undertaken “with intent to delay, hinder, or defraud creditors”.Director of Marketing and Client Services.Pender & Coward Executive Staff Executive Staff.Wills, Trusts, Estate Planning & Administration.Government Contracts and Public Procurement. ![]() Pender & Coward Practice Areas Practice Areas.
0 Comments
Leave a Reply. |