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In Nevada, the elements for a claim of fraudulent transfer are:

  1. A transfer was made with actual intent to hinder, delay, or defraud any creditor of the debtor;
  2. Without receiving a reasonably equivalent value in exchange for the transfer or obligation;
  3. The debtor was engaged or was about to engage in a business or a transaction for which the remaining assets of the debtor were unreasonably small in relation to the business or transaction;
  4. Debtor intended to incur, or believed, or reasonably should have believed, that he would incur debt beyond his ability to pay as they became due; and
  5. There is heightened scrutiny if the transfer or obligation was to an insider as defined by statute.

NRS 112.180; NRS 112.210; NRS 112.190; In re: FSG-R, LLC, 2012 WL 753353; In re 155 East Tropicana, LLC, 2012 WL 668579; Herup v. First Boston Financial, LLC, 123 Nev. 27, 162 P.3d 870, 873 (2007); Montana Nat’l. Bank v. Michels, 631 P.2d 1260 (Nev. 1981); Crescent v. White, 92 Nev. 661, 556 P.2d 1265 (1976); Matusik v. Large, 85 Nev. 202, 462 P.2d 457 (1969); 32 Am. Jur. 2d Fraudulent Conveyances § 10, at 701.

 

See elements for other claims at the Nevada Law Library

About the Author

Jay Young is a Las Vegas, Nevada attorney. His practice focuses on business law, business litigation, and acting as an Arbitrator and Mediator.

Mr. Young can be reached at 702.667.4868 or at jay@h2law.com.