McKeown v. Allen
McKeown v. Allen
Opinion of the Court
The answer makes no defense upon any claim of homestead upon the part of Mrs. Lucy Allen, and that question is eliminated from the discussion.
' In a recent decision of this court, made at the present term (Claflin & Thayer vs. Ambrose) 'it was held that “a voluntary conveyance of real property not his
There is some conflict of authority as to the effect upon the rights of existing creditors of voluntary conveyances by debtors of their real estate. By some authorities it is held that such conveyances by a man indebted at the time is of itself a fraud upon creditors, no matter how innocent or meritorious the motive with which the conveyance was made, or how inconsiderable the part of the grantor’s property which is disposed of. Upon the other hand, the greater weight of authority supports the proposition that such convey
The defendants deny that their intention was to defraud, hinder or delay creditors, in the execution of the conveyance between them. Such hindrance and
While we have said that it is not essential to show that the debtor was insolvent at the time of the execution of the voluntary conveyance, we think upon principles of law governing the case that it does appear that J. Wesley Allen was insolvent at the time he executed the deed in controversy to his wife. By the return of nulla bona upon the execution it appears that he was wholly insolvent at such time, and as to real estate, except that included in the deed, was insolvent when the judgment was rendered. The debt upon which judgment was recovered was in existence for years before the conveyance was executed. In such cases the insolvency will be considered as extending back in time beyond the conveyance. Carlisle vs. Rich, 8 N. H. 44; Strong vs. Lawrence, 58, Iowa, 55, 12 N. W. Rep. 74.
The decree of the Circuit Court is reversed with directions that a decree be entered for complainant granting the relief prayed for in the bill of complaint.
Reference
- Full Case Name
- Addison P. McKeown v. J. Wesley Allen and Lucy Allen, his wife
- Cited By
- 23 cases
- Status
- Published
- Syllabus
- 1. A voluntary conveyance by one who is indebted is presumptively fraudulent when attacked by a judgment creditor upon a debt existing at the time of its execution. In such cases it is not necessary to show that the debtor was actually insolvent at the time he executed the conveyance. 2. The general rule is that a deed with a consideration merely nominal will be considered voluntary, as against attacking creditors. 3. A conveyance of lands by a husband to his wife which purports to be made “in consideration of love and affection, and for the sum of one dollar cash in hand paid, the receipt whereof is hereby acknowledged,” is purely voluntary, and void as against existing creditors of the husband. 4. Voluntary conveyances by debtors of their real estate are not absolutely fraudulent per se, but are prima fade or presumptive evidence of fraud, which may be rebutted or explained, and the burden of proof to show that the deed was not fraudulent falls upon those claiming under it. 5. As to existing creditors of the grantor, one dollar is no good or valuable consideration for land which cost $250, to which improvements have been added, and forty-six head of cattle and twenty-five head of hogs. 6. It matters not whether the intention of parties to a voluntary ' conveyance is to hinder and delay creditors. When such hindrance and delay is the result of such a conveyance the real motive of the parties is immaterial.