![]() "Value" is to be determined in light of the purpose of this chapter to protect a debtor's estate from being depleted to the prejudice of the debtor's unsecured creditors. The problem with this argument is that consideration is always measured from the viewpoint of creditors, or as the reviewing court put it: The Debtor's argument, which the trial court agreed with, was that because the Debtor's wife also put her three properties into TBE, that constituted "reasonably equivalent consideration" for the three properties that the Debtor himself put into TBE. The biggest issue in the case involved reasonably equivalent value. The trial court ruled in favor of the Debtor, holding that when the Debtor's wife also put her three independently-owned properties into TBE, that was consideration for the Debtor putting his property into TBE. Under examination, the Debtor refused to discuss his finances or the transfers of the properties into tenancy by the entireties, and instead invoked the Fifth Amendment right against self-incrimination because he was facing criminal charges relating to his businesses.Ĭreditor then sought to avoid the Debtor's transfers to his wife and into TBE as a fraudulent transfer. Because of this creditor-protective benefit, TBE is widely used as an asset protection tool. ![]() ![]() However, the Debtor continued to manage those properties that had been his before, and his wife managed those properties that had been hers before.įor those who are unfamiliar with the concept, tenancy by the entireties ("TBE") is a form of legal ownership of property, a type of estate in land, whereby both the husband and wife own the property by "the entireties" - and the property is not available to the creditors of either spouse (but would be available to a creditor of both of them). At the same time, the Debtor's wife likewise transferred three other properties that she owned individually into tenancy by the entireties for the couple. During the time-period when distributions should have been made to the Creditor, the Debtor changed the title of three properties that he held individually to be held in tenancy by the entireties by himself and his wife.
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