Badges of Fraud

A list of factors the Court can consider to determine whether someone engaged in fraudulent behavior; most commonly, in Arizona family, the term is associated with a spouse who conceals assets from the other spouse. The badges of fraud are as follows: Insolvency/Indebtedness of the Transferrer
Lack of consideration for the conveyance
Retention by the debtor of possession of the property
Relationship between the Transferrer and Transferee
Reservation of Benefit to the Transferrer
Pendency or Threat of Litigation
Secrecy or Concealment
Transfer of the Debtor’s Entire Estate
Conduct of transfer not in usual course of business … Not all factors need to be shown for the Court to find fraud. In fact, it can rely on just one of the factors. The purpose of the factors is to help courts identify situations where fraud may have occurred.