Legal Question in Credit and Debt Law in New York

i live with my wife in a ny home---she was quit claimed off the deed as i will be attempting a reverse mortgage in a few years when im 62 and shes 57---im retired and shes employed at 42000 per annum---shes a cosigner on my son's private college home---if he defaults on his loan and she as cosigner does as well could this quit claim be considered fraudulent conveyance---


Asked on 1/18/10, 6:49 am

1 Answer from Attorneys

Peter Gleason Mavrides, Moyal & Associates, LLP

As with any legal matter a complete picture of the relevant facts would be needed, and would likewise be the basis for a determination such as this.

However, findings of fraudulent conveyances would usually be predicated on a showing of INTENT to defraud creditors. Based on your facts, for the conveyance to be considered fraudulent, it would likely have to be shown that your wife knew your son defaulted on the loan (which she co-signed for) and that she thereafter deeded herself off the property in order to put it out of reach of the creditor. Among other factors, these facts would tend to prove the required intent. Thus if it does not appear from the timeline and facts that she intended to defraud, the finding would be unlikely.

NOTE: Please bear in mind that the above response is provided for informational purposes only, and does not constitute legal advice or create an attorney-client relationship. Because every case depends on unique facts, it is recommended that you contact and meet with a competent attorney in your area. Kindly feel free to contact me via telephone or email should you wish to further discuss your case and/or the possibility of obtaining representation. Thanks.

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Answered on 1/31/10, 6:39 pm


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