ALPINE NEW JERSEY BERGEN COUNTY DIVORCE FRAUD MEDIATION LAWYER

The lender alleged the husband fraudulently transferred his interest in the marital home to his wife and thereby violated the New Jersey Uniform Fraudulent Transfer Act.  The husband's defense was he received reasonably equivalent value from the wife for the transfer -- $400,000 in loan proceeds for his businesses -- in return for giving up his equity interest in the home. Examining the  "badges of fraud", the court grants summary judgment to the lender as to "actual fraud " but finds in favor of  the husband and wife as to "constructive fraud ".  Proof of the former under N.J.S.A. 25:2-25(a) must be by clear and convincing evidence, whereas proof of the latter under N.J.S.A. 25:2-25(b) must be by a preponderance of the evidence.  The CIT Group/Equipment Financing, Inc. v. Zavidow, et ux., et al., Ch. Div. Bergen Cy. (Contillo, J.S.C.) , September 12, 2007