Graham v. Morgan
Graham v. Morgan
Opinion of the Court
delivered the opinion of the court.
The sole question presented by this record is whether appellee participated in or was cognizant of the fraudulent intent of her husband towards his other creditors in mating the deed of the .property to her. It is probably true that but for the suit then •pending of Nicholson v. T. B. Morgan (husband of appellee), and the probability of judgment being obtained by Nicholson, the property would not have been conveyed at the time it was. .But assuming this to be true, it is not of,itself sufficient to show that appellee was a party to any fraud. Tinder uniform decisions of our court, a husband, though insolvent, has a right to prefer his wife and protect her interest by conveying his property to her, even though by so doing his other creditors are defeated of their rights, and even though the conveyance is made on account of the pendency of suits by other creditors against him; the only condition being that there must be existing between husband and wife a valid indebtedness equal to the fair
Affirmed.
Reference
- Full Case Name
- James M. Graham v. Martha A. Morgan
- Cited By
- 5 cases
- Status
- Published
- Syllabus
- 1. Fraudulent CONVEYANCES. Husband and wife. Suit agaAnst vendor. Notice to vendee. The fact that a husband had been sued by another creditor at the time he conveyed property to his wife, in satisfaction of a debt due her, is not alone sufficient to charge her with' notice of his intent to defraud other creditors in so doing. 2. Same. Intent to prefer wife. A conveyance from a husband to his wife, in satisfaction of a preexisting valid indebtedness is not fraudulent as to his creditors where the value of the property conveyed does not exceed the amount of the debt, although the husband designed to prefer his wife.