In 2014, the National Conference of Commissioners on Uniform State Laws adopted several amendments to the Uniform Fraudulent Transfer Act (UFTA). Over 40 states have enacted some form of the UFTA, and most will likely in due course adopt the recent amendments.
One of the amendments changed the name of the law. It is now called the Uniform Voidable Transactions Act (UVTA). Changing the word Fraudulent to Voidable is significant.
Certain transfers that used to be called fraudulent may not seem fraudulent in the way that word is usually used. For example, if you move $10,000 from your bank account to your husband’s bank account, you may not feel like you are committing fraud. But if you are insolvent at the time of that transfer, one or more of your creditors may be able to void that transfer and get those funds.
Words are important and this name change is helpful. The transfer of assets and the timing of the those transfers need careful consideration. Transfers that may not seem “fraudulent” to you may in fact be voidable by a creditor. Restructuring assets before you have any creditor issues is always the best strategy.