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Porenta v. Porenta, 2017 UT 78 (Nov. 15, 2017).

Nov 15, 2017

In the midst of divorce proceedings, Husband transferred the couple’s marital home to his mother, intending to void Wife’s claim to the home. Before the divorce was finalized, Husband died. At trial, the court held that the transfer was fraudulent, and awarded the home to Wife. Mother appealed, arguing there was no ongoing debtor-creditor relationship as required under the Utah Fraudulent Transfer Act (UFTA) as this relationship was extinguished upon Husband’s death. Affirming the trial court’s holding, the Utah Supreme Court held that although the UFTA does require an ongoing debtor-creditor relationship, the death of a spouse during a divorce proceeding does not abate the action in regards to property rights that have been determined by the court, and therefore the debtor-creditor relationship was not extinguished upon Husband’s death, and the claim survived against Husband’s estate.