Watt v. Morrow

Citations

• 19 S.D. 317
• 103 N.W. 45
• 1905 S.D. LEXIS 43

Syllabus

<p>1. In an action by a judgment creditor against the debtor and his wife to subject to the payment of the judgment land alleged to have been purchased by the husband and placed in the wife’s name for the purpose of defrauding the husband’s creditors, where both defendants deny that the husband paid any part of the consideration, the presumption that, where property paid for by the husband is conveyed to the wife, it is an advancement made for her benefit, does not obtain.</p> <p>2. The statute of limitations does not begin to run against the right of a creditor to bring an action to subject to the payment of his claim land alleged to have been purchased by his debtor and conveyed to the latter’s wife in fraud of creditors, until the recovery of judgment by« such creditor.</p> <p>3. In an action to subject to the payment of a judgment land alleged to have been purchased by the judgment debtor and conveyed to his wife in fraud of creditors, a court of equity will not regard as of very great importance the mere fact that the deed was taken in the name of the wife, but will look at the circumstances surrounding the transaction, and determine therefrom the real nature of such transaction.</p> <p>4. In an action to subject to the payment of a judgment land alleged to have been purchased by the judgment debtor and conveyed to the latter’s wife in fraud of creditors, evidence held to show that such land in fact belonged to the husband.</p> <p>5. Under Rev. Civ. Code S. D. § 303, providing: “When a transfer of real property is made to one person, and the consideration therefor is paid by or for another, a trust is presumed to result in favor of the person by or for whom such payment is made,” when the facts and circumstances under which a deed is taken clearly show that the consideration was paid by the debtor, and the title taken in the name of another person, equity will apply the property to the payment of the obligations of the debtor.</p>