Fraudulent Conveyance?

[Natey]

Scenario:
Person P1 is dragged into a lawsuit by a vexatious litigant.
P1 meets with an attorney A1 who claims to specialize in "Asset Protection", according to P1. (sidenote: is this really a field of legal specialization?)
A1 devises a scheme to transfer all of P1's assets into a Revocable Separate Property Trust in A1's wife's name (W1), to "protect the assets", before the case involving P1 is eventually brought to closure in P1's favor shortly thereafter.
A couple of years later, W1 and P1 file for divorce, and W1 refuses to return any of P1's assets back to P1, claiming the asset transfer devised by A1 was an outright gift.

Can P1 sue A1 for damages/losses incurred for devising and executing what appears to be a Fraudulent Conveyance?
(The FC should be basic/elementary legal knowledge to any attorney, right?)

 

[army judge]

You can sue anyone. The better question is, can you win?

In the hypo provided, the attorney did nothing wrong.

However, the person who HID his assets to avoid legal process is the guilty one. If I were THAT person, I'd take my lumps. The wife made out like a bandit, and now she's enjoying her "gifts"!

If your lawsuit were a dog, it couldn't hunt.


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[Natey]

In the hypo provided, the attorney did nothing wrong.

Devising a scheme to transfer assets (during the lawsuit with the vexatious litigant) without explaining to P1 what a fraudulent conveyance is, is OK for attorney A1 to do? I'm surprised more attorneys don't do these things without incurring any kind of liability.

And in Law, isn't there the notion of a "Consideration" in order for such a transfer to be considered legitimate? i.e. something needs to be exchanged, basically; not one-way, as in the scenario.

However, the person who HID his assets to avoid legal process is the guilty one.

Yes, I concur. However, since P1 prevailed against the vexatious litigant, no assets were actually hidden (effectively), making the legality of this aspect moot, no?

Is "asset protection" a new specialization in the field of law? e.g. like tax attorneys, divorce attorneys, immigration attorneys, ...

 

[army judge]

Devising a scheme to transfer assets (during the lawsuit with the vexatious litigant) without explaining to P1 what a fraudulent conveyance is, is OK for attorney A1 to do? I'm surprised more attorneys don't do these things without incurring any kind of liability.

And in Law, isn't there the notion of a "Consideration" in order for such a transfer to be considered legitimate? i.e. something needs to be exchanged, basically; not one-way, as in the scenario.



Yes, I concur. However, since P1 prevailed against the vexatious litigant, no assets were actually hidden (effectively), making the legality of this aspect moot, no?

Is "asset protection" a new specialization in the field of law? e.g. like tax attorneys, divorce attorneys, immigration attorneys, ...

This is the ONLY warning I'll give you.
Do this again, and I'll BAN you permanently!
Do NOT post nonsense and useless questions on threads just to increase your post count, or just because.



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[Natey]

Could we set your suspicion that I am posting nonsense aside for a minute, and get back to my question?

This is a true case and names had been changed to protect identities.

Attorney A1 apparently (and narrowly) escaped a malpractice suit because the Statute of Limitations had expired.

Does an attorney (especially one practicing in CA) have an obligation to indicate that what was being done in the "scenario" above is a Fraudulent Conveyance?
And, is "Asset Protection" a new specialization in the field of Law?

 

[army judge]

Could we set your suspicion that I am posting nonsense aside for a minute, and get back to my question?

This is a true case and names had been changed to protect identities.

Attorney A1 apparently (and narrowly) escaped a malpractice suit because the Statute of Limitations had expired.

Does an attorney (especially one practicing in CA) have an obligation to indicate that what was being done in the "scenario" above is a Fraudulent Conveyance?
And, is "Asset Protection" a new specialization in the field of Law?

I suggest you consult with an attorney (or several attorneys) in your county about the above (or any) legal concern(s) you possess.


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[Natey]

Yes, but maybe someone else in these forums could comment on this matter too.
Thank you for your time.