A Georgia parent who is owed child support is a creditor by statute, and can ask a court to set aside a transfer the other parent made to put property out of reach.
You Are a Creditor
Under OCGA 19-6-35(b), a child support obligee “shall be regarded as a creditor, and a child support obligor shall be regarded as a debtor,” for the purpose of attacking as fraudulent any “conveyance, transaction, or other arrangement interfering with the creditor’s rights.” In Pate v. Pate, 280 Ga. 796 (2006), the Georgia Supreme Court explained that the section was enacted in 1997 “to comply with federal requirements” that states let support recipients void such transactions.
The Transfer Can Be Undone
Under OCGA 18-2-74(a)(1), part of Georgia’s Uniform Voidable Transactions Act, a transfer is voidable if made “[w]ith actual intent to hinder, delay, or defraud any creditor,” and the statute lists signs of that intent, such as a transfer to an insider or one that left the debtor insolvent. Under OCGA 18-2-77, the court may avoid the transfer, enjoin further disposition, or appoint a receiver, and under OCGA 18-2-79 the action must generally be brought within four years.
Examples
In Cavin v. Brown, 246 Ga. App. 40 (2000), a father owing $17,745 in arrears deeded his only substantial asset, land worth over $30,000, to his girlfriend as a gift while the mother was demanding payment of a child’s medical bills. The Court of Appeals upheld an order setting aside the deed and awarding $30,000 in general and punitive damages, holding that no judgment was needed because the statute “expressly provides that child support obligees are creditors.”
Similarly, in Wood v. McGahee, 211 Ga. 913 (1955), a husband deeded his 100-acre farm to his brother-in-law days after a support decree, and the Supreme Court held the wife had stated a claim to cancel the deed.
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This post is a quick overview of the law and is not intended as legal advice. Please feel free to contact our office for a consultation if you have questions about this or any other legal aspects regarding your case!