fraudulent transfern.
Reviewed by Owen Hathaway, AttorneyUpdated June 5, 2026A transfer made to put assets out of a creditor's reach, which a court can undo. The modern statutory term is voidable transaction.
A fraudulent transfer (now called a voidable transaction under modern uniform law) is a transfer of property made with intent to hinder, delay, or defraud a creditor, or made without receiving reasonably equivalent value while insolvent. A court can set the transfer aside and let the creditor reach the asset.
This is the legal backstop that defeats last-minute asset shuffling. It is why legitimate asset protection must be done before a claim arises, not in response to one.
Colorado has adopted the Uniform Voidable Transactions Act (C.R.S. Title 38, Article 8). Wyoming has adopted comparable uniform legislation. Both give creditors a multi-year window to challenge transfers and look hardest at transfers to insiders.
Related terms
- asset protection planningArranging ownership of assets in advance and lawfully so they are harder for future creditors to reach, done before a claim arises rather than after.
- self-settled trustA trust the creator sets up for their own benefit. In most states this offers little protection from the creator's creditors; a few states allow protective versions.