Judgment Creditors, Resulting Trusts, and the Matrimonial Home

Canadian Family Law Quarterly 35 (2016)

18 Pages Posted: 17 Apr 2020

See all articles by Peter S. Spiro

Peter S. Spiro

University of Toronto - Mowat Centre for Policy Innovation, School of Public Policy and Governance

Date Written: 2016

Abstract

One often finds that a person in business puts the title to the family home only in the name of the other spouse, rather than holding it in joint title. The hope is that the house will remain safe from his creditors if he cannot pay his business debts. This can backfire for a variety of reasons, particularly if the spouses later separate. One situation in which it will fail to provide protection is when unpaid debts were already looming at the time the transfer occurred. If such a transfer of ownership is done with the intent of defeating creditors, it can be deemed to be a fraudulent conveyance and set aside by a court as void against creditors. Putting the house in only one name does sometimes offer protection, but it should be approached with careful planning.

Keywords: debtor, creditor, family property, matrimonial home, fraudulent conveyance, resulting trust

JEL Classification: K11, K35, K36

Suggested Citation

Spiro, Peter, Judgment Creditors, Resulting Trusts, and the Matrimonial Home (2016). Canadian Family Law Quarterly 35 (2016). Available at SSRN: https://ssrn.com/abstract=3546959 or http://dx.doi.org/10.2139/ssrn.3546959

Peter Spiro (Contact Author)

University of Toronto - Mowat Centre for Policy Innovation, School of Public Policy and Governance ( email )

720 Spadina Avenue, Suite 218
Toronto, Ontario M5S 2T9
Canada

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