Fraudulent Conveyance In An Illinois Divorce - Russell D. Knight

BSPE Legal Marketing Podcast

From Law Office of Russell D. Knight - In this episode, we delve into the intricacies of 'Fraudulent Conveyance In An Illinois Divorce,' shedding light on how some spouses might attempt to transfer assets to third parties to avoid division during divorce proceedings. We discuss key cases such as Johnson v. La Grange State Bank and Hofmann v. Hofmann, which illustrate the legal principles governing these fraudulent transfers and the circumstances under which an Illinois divorce court can void or set aside such transactions.
Understanding the distinction between marital property and property transferred to third parties is crucial. Illinois law, under 750 ILCS 5/503, mandates the division of marital property in just proportions. However, complications arise when assets are no longer held by either spouse, as seen in In re Marriage of Simmons. Our discussion explores how the court may join additional parties, as per 750 ILCS 5/403(d), to exercise its authority and reclaim these assets for equitable division.
The episode also examines the common law relief and the Uniform Fraudulent Transfer Act, highlighting their roles in addressing fraudulent conveyances. We explain how transactions can be deemed fraudulent, either through inadequate consideration or intent to defraud, and the necessity of proving fraud with clear and convincing evidence, as established in Kardynalski v. Fisher. This segment underscores the importance of thorough investigation and specificity in pleadings to set aside fraudulent transfers effectively.
Lastly, we address the practical implications of fraudulent conveyances in divorce cases, including the concept of dissipation of assets, outlined in 750 ILCS 5/503(d)(2). We discuss strategies to protect one’s interests, from seeking court orders against further disposition of assets to leveraging the Uniform Fraudulent Transfer Act post-divorce. Tune in to gain a comprehensive understanding of how Illinois divorce courts handle fraudulent conveyances and the legal remedies available to safeguard marital assets.
Law Office of Russell D. Knight
1165 N Clark St #700, Chicago, IL 60610, United States
[phone]
https://www.google.com/maps?cid=13056420905624162796