fraudulentconveyance
CMB MAGAZINE cmba-achc.ca spring 2019 | 33
in his matrimonial home to his wife. e
consideration for the transfer from joint
tenancy to the wife solely was noted as
natural love and affection.
e client made the transfer because his
wife wanted to protect the family home from
an outstanding judgment in favour of the
client's former employer. e client's wife had
provided the purchase monies, and she was
using her employment income to pay for the
mortgage and the upkeep of the property.
ISSUE
Your borrower breached your mortgage
and unfortunately the sale of the property
in the foreclosure proceeding le a balance
owing. You want to pursue collection of the
balance by registering your judgment against
property the borrower owns as a joint tenant
with his spouse. When you go to register
the judgment, you find out the borrower has
transferred the property so that his spouse is
the sole owner. Can you still register against
the property? Can you have the transfer
between the spouses reversed? e Ontario
Supreme Court in Devry Smith Frank LLP v.
Chopra, 2018 ONSC 1303 provides
some guidance.
WHAT HAPPENED?
A law firm obtained a judgment against a
client.
A month aer the judgment was granted,
the client transferred his registered interest
UNDOING FRAUDULENT
CONVEYANCE
Debtors can run, but they can't hide
BY RAY BASI, LL.B., STAFF EDUCATION AND POLICY REVIEW
