“Transfers” Fraudulent Transfer Act
The fraudulent transfer act allows a creditor to unwind property transfers designed to defeat a creditor’s rights. “To set aside a transfer as fraudulent under the [Missouri Uniform Trust Act], it is necessary to show that the transfer was made with an intent to hinder, delay, or defraud creditors.” Birkenmeiner v. Keller Biomedical, LLC, 312 S.W.3d 380, 389 (Mo. App. E.D. 2010). The burden is on the creditor, as fraud is never presumed when the transaction is fairly reconciled with honesty. Buneman v. Zykan, 52 S.W.3d 49, 54 (Mo. App. E.D. 2001). Because fraud is rarely susceptible to direct proof, circumstantial evidence is usually required. Higgins v. Ferrari, 474 S.W.3d 630, 636 (Mo. App. W.D. 2015).
A “transfer” is required to make a fraudulent transfer act claim. Section 428.009(12), RSMo defines a “transfer” as “every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with an asset or an 5 interest in an asset, and includes payment of money, release, lease, and creation of a lien or other encumbrance.” For instance, a creditor adequately pleaded a fraudulent transfer violation a plaintiff alleged debtor conveyed all of his income as an orthopedic surgeon to third parties. Fischer v. Brancato, 147 S.W.3d 794, 799-800 (Mo. App. E.D. 2004).