Opinion ID: 1394944
Heading Depth: 2
Heading Rank: 2

Heading: fraudulent conveyance of the avenue

Text: Kim argues that Richard's secret conveyance of his interest in The Avenue to his brother three days after receiving service of divorce papers was intended to defraud her of her fair share of a primary marital asset. Alaska Statute 34.40.010, the Fraudulent Conveyance Act, provides: A conveyance or assignment, in writing or otherwise, of an estate or interest in lands, or in goods, or things in action, or of rents or profits issuing from them or a charge upon lands, goods, or things in action, or upon the rents or profits from them, made with the intent to hinder, delay, or defraud creditors or other persons of their lawful suits, damages, forfeitures, debts, or demands, or a bond or other evidence of debt given, action commenced, decree or judgment suffered, with the like intent, as against the persons so hindered, delayed, or defrauded is void. A conveyance of marital property made in anticipation of a divorce may be set aside as fraudulent. Gabaig v. Gabaig, 717 P.2d 835, 837-38 (Alaska 1986). In Gabaig, the husband, in anticipation of divorce, secretly conveyed marital property through a straw man to his son by a prior marriage. We affirmed the trial court's finding that the transfer was fraudulent and therefore void under AS 34.40.010. The key attribute of fraudulent conveyances is that they are made with the intent to defraud. Existence of fraudulent intent is a question of fact. Id. at 838. We will not set aside a determination of fraudulent intent unless, upon our reading of the record as a whole, we are left with the definite and firm conviction that a mistake has been made. Alaska R.Civ.P. 52(a); Williams v. Alyeska Pipeline Service Co., 650 P.2d 343, 347 (Alaska 1982). In Gabaig, we identified eight badges of fraud which may provide circumstantial evidence of a fraudulent conveyance: inadequate consideration; transfer in anticipation of an impending suit; insolvency of the transferor; failure to record; a transfer encompassing substantially all of the transferor's property; a transfer completely depleting the transferor's property; and the relationship between the parties to the sale. 717 P.2d at 839 n. 6. Not all the badges need be present to affirm a finding of fraud. Id. at 839 n. 8. The court below concluded that Richard's sale of his interest in The Avenue was not intended to defraud Kim because it found that the sale was made at fair market value and that Richard did not retain an interest in the property after the sale. Neither of these findings is supported by substantial evidence in the record. Our reading of the record leaves us with the definite and firm conviction that Richard intended to defraud Kim when he sold his interest in The Avenue.