Peterson v. Badger State Land Co.

Citations

• 86 Wash. 530
• 150 P. 1187
• 1915 Wash. LEXIS 1036

Syllabus

<p>Fraudulent Conveyances — Between Husband and Wife — Gift or Preference. Where a husband conveyed all his community property to a corporation, formed for the purpose of holding it for his wife, who was the sole stockholder, equity will look to the intent, and regard it as a gift to the wife, rather than a preference, where the value of the property is so disproportionate to the alleged claim of the wife as to constitute a badge of fraud.</p> <p>Same — Title of Fraudulent Grantee. In such a case, the wife, whether in person or by the corporation, is presumed to be a trustee, holding the legal title for the community.</p> <p>Same — Burden and Degree of Proof. As against creditors of the husband, the burden of establishing the good faith of his conveyance to his wife is upon the party asserting the good faith, under Rem. & Bal. Code, § 5292; and the proofs must be clear, cogent, and convincing.</p> <p>Fraudulent Conveyances — Transaction Between Husband and Wife — Evidence—Sufficiency. A transaction whereby a husband and wife, just prior to entry of judgment against them on a community debt in the sum of $2,700, formed a corporation, in which the wife was the sole stockholder, and conveyed to it all their community property together with separate property of the wife, all of the estimated value of $12,000, for the purpose, as claimed, of raising money to pay the husband’s debt of about $1,300 and to secure the wife for $3,200 rents of her separate property collected by the husband, must be regarded as a conveyance by the husband to the wife, and the burden of establishing the good faith of the transaction, as upon a sufficient consideration, by clear, cogent, and convincing evidence, is not met, where it appears that the property, if pledged at all, was pledged only as security for the $1,300 indebtedness, evidenced by a note which was a community debt, that the husband could give no accounting of the rents claimed to have been received, all or part of which were dis