In an issue of first impression, the Michigan Court of Appeals considered whether a party may dispose of all of his assets to avoid payment of damages in a pending wrongful death case by transferring 100% of the marital assets to his spouse by means of an uncontested divorce judgment.
The Court of Appeals held that such a transfer could be set aside in a supplementary action as a fraudulent transfer under the Uniform Fraudulent Transfer Act (UFTA) as to a creditor of the transferring spouse. Estes v. Titus, Docket No. 261968, decided on December 21, 2006. (For Publication)