A fraudulent transfer refers to the act of intentionally transferring money or assets to another party to avoid them being seized by creditors or in anticipation of a lawsuit. This typically occurs when a debtor tries to place assets beyond the reach of creditors by transferring them to family members, friends, or into a trust, often for less than their true value.

These transfers are scrutinized under law, and if deemed fraudulent, courts can reverse the transaction to ensure fair debt collection. The main criteria for determining if a transfer is fraudulent include the timing of the transfer relative to the creditor’s claim and the financial condition of the debtor at the time of the transfer.

Florida asset protection attorneys Jon Alper and Gideon Alper, part of Alper Law