Sturm v. MoyerAnnotate this Case
Assuming fraudulent intent, the Uniform Voidable Transactions Act, formerly known as the Uniform Fraudulent Transfer Act (UFTA), can apply to a premarital agreement in which the prospective spouses agree that upon marriage each spouse's earnings, income, and other property acquired during marriage will be that spouse's separate property. In this case, plaintiff obtained a judgment in bankruptcy court against defendant. Plaintiff alleged a single cause of action under UFTA to set aside the alleged transfer of defendant's community property interest in the wife's earnings and income.
The trial court sustained defendant's demurrer and found that defendants were entitled to alter the presumptions under Family Code 760 and Family Code 910 that property acquired during the marriage is community property and that the community estate would be liable to satisfy any judgments against defendant. The Court of Appeal reversed in light of the legislative language, history, and the strong policy of protecting the creditors from fraudulent transfers. Therefore, the court held that the Legislature must have intended that UFTA can apply to premarital agreements in which the prospective spouses agree that each spouse’s earnings, income, and property acquired during marriage will be that spouse's separate property.