Isabel Valdivia v. Esther Fajardo Valdivia

Summary

The Florida Third District Court of Appeal held that a debtor may not transfer individually owned property to himself and his wife as tenants by the entireties if the transfer defrauds creditors by placing the property beyond their reach. The court reversed the trial court’s denial of a petition to void a conveyance, finding the ex-wife sufficiently alleged a fraudulent transfer claim where the decedent transferred his medical practice to himself and his new wife as joint tenants, leaving insufficient assets to satisfy a lump sum alimony judgment that constituted a claim against his estate.

Holdings

1. A debtor may not transfer property owned individually to himself and his wife as tenants by the entireties if such transfer will defraud creditors by placing property beyond their reach.

Questions Presented

1. Whether the ex-wife's petition sufficiently alleged a cause of action for fraudulent conveyance to defeat her claim for unpaid lump sum alimony against the decedent's estate.

Disposition

reversed_and_remanded