Citizens State Bank Norwood Young Am. v. Brown
Annotate this CaseAfter Gordon Brown’s debt to Citizens State Bank Norwood Young America (Bank) became delinquent, Gordon petitioned to dissolve his twenty-three-year marriage to Judy Brown. The Browns executed a marital termination agreement that was incorporated into the marital dissolution decree. Pursuant to the dissolution judgment and decree, Gordon transferred to Judy several assets. When it was unable to collect from Gordon on the original judgment, the Bank brought this action under Minnesota’s Uniform Fraudulent Transfer Act (MUFTA) to levy execution on the assets Gordon transferred to Judy, alleging that the transfers were made with the intent to defraud the Bank. The district court granted summary judgment in favor of the Bank, determining that the transfers were voidable under MUFTA. The court of appeals affirmed. The Supreme Court affirmed the district court’s judgment granting the Bank authority to levy execution on assets fraudulently transferred to the extent necessary to satisfy the Bank’s claim, holding that MUFTA applies to transfers made pursuant to an uncontested marital dissolution decree.
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