§ 3.20.1 Fraudulent Transfers

• Jurisdiction: Arizona

§ 3.20.1 Fraudulent Transfers . Arizona has adopted the Uniform Fraudulent Transfer Act, A.R.S. §§ 44-1001 to -1010 (the “Act”). Most of the precedents under the former Uniform Fraudulent Conveyances Act will still apply as the basic concept of fraudulent transfer is the same as that of a fraudulent conveyance. Areas that were “clarified” by the new law include: the computation of the statute of limitations; the remedies available to creditors; and the distinction between “actual” and “implied” intent to defraud. The crucial determination of whether a particular transfer is fraudulent is a question of some difficulty. A debtor may pay, grant liens to, or transfer property to any creditor in any order so long as it is not a “fraudulent transfer.” Sackin v. Kersting; 105 Ariz. 464, 466 P.2d 758 (1970). However, actual intent to defraud or hinder or delay a creditor may be shown by direct proof or by circumstantial evidence from which actual intent may be reasonably inferred. Gerow v. Covill, 192 Ariz. 9, 960 P.2d 55, as amended (Ct. App. 1998) (once actual intent is shown, there is no further need to prove common law elements of fraud); Premier Financial Services v. Citibank (Arizona), 185 Ariz. 80, 912 P.2d 1309...