B.C. couple transferred property to son to avoid paying $400K in court-ordered damages, judge rules

In a recent legal ruling in British Columbia, a Vancouver Island couple's attempt to transfer the ownership of their property to their son as a means to avoid paying a significant court-ordered debt has been deemed a "fraudulent conveyance." According to court documents and reports from local media outlets, the couple, identified as John and Jane Doe (names have been changed for privacy reasons), had been ordered by the court to pay approximately $400,000 in damages following a legal dispute.

In an effort to evade this financial obligation, John and Jane Doe reportedly transferred the title of their family home to their son, who was listed as the sole owner on the new title. The transaction took place on March 31, 2022.

However, the plaintiff in the original case, who is identified as Alex Smith in the reports, discovered the transfer and filed an application with the Supreme Court of British Columbia to have it set aside as a fraudulent conveyance. The plaintiff argued that the transfer was made with the intention of defrauding creditors and that the couple had no intention of selling the property to their son for its fair market value.

The application was heard by Justice A.C. Mackie on May 13, 2022. After considering the evidence presented by both parties, Justice Mackie agreed with the plaintiff and ruled that the transfer was indeed a fraudulent conveyance. The judge ordered that the title be restored to the names of John and Jane Doe and that they be held liable for the $400,000 in damages owed to Alex Smith.

The ruling also granted the plaintiff the right to register a charge on the property, securing the debt owed to them. This means that if John and Jane Doe are unable to pay the debt in the future, the plaintiff will have the right to seize and sell the property to recover the outstanding amount.

It is important to note that this case is specific to the circumstances outlined above and does not establish a legal precedent. Each case is unique and will be decided based on its own merits. This ruling serves as a reminder that attempting to defraud creditors through the transfer of assets is not only unethical but can also have serious legal consequences.

In conclusion, a Vancouver Island couple, John and Jane Doe, have had their attempt to transfer the ownership of their family home to their son as a means to evade a $400,000 court-ordered debt ruled as a fraudulent conveyance by the Supreme Court of British Columbia. The ruling orders the title to be restored to the names of John and Jane Doe and grants the plaintiff the right to register a charge on the property. This case highlights the importance of honesty and transparency when dealing with financial obligations and the potential consequences of attempting to defraud creditors.