In an appeal involving a fraudulent conveyance pursuant to the Statute of Elizabeth, S.C. Code Ann. § 27-23-10, the Court of Appeals held that a conveyance of real property from husband to his then wife was void as a fraudulent transfer.
Under the Statute of Elizabeth, conveyances may be set aside under two conditions:
- Where the transfer is made by the grantor with the actual intent of defrauding his creditors where that intent is imputable to the grantee, even though there is a valuable consideration; and,
- Where a transfer is made without actual intent to defraud the grantor’s creditors, but without valuable consideration.
The court held that the record in this case compels a finding that the transfer in question was not supported by valuable consideration. Where a transfer is made without valuable consideration being exchanged, the transfer will be set aside only when the creditor establishes the following:
- The grantor was indebted to the creditor at the time of the transfer;
- The conveyance was voluntary; and
- The grantor failed to retain sufficient property to pay his indebtedness to the creditor in full, not merely at the time of transfer, but in the final analysis when the creditor seeks to collect the debt.
Finding these requirements satisfied, the court held the conveyance was void as fraudulent. You can read the full text of Albertson v. Robinson by clicking HERE.