Definition of Fraudulent Conveyance
A conveyance or transfer of property, the object of which is to defraud a creditor, or hinder or delay him, or to put such property beyond his reach. Dean v. Davis, 242 U.S. 438, 37 S.Ct. 130, 61 L.Ed. 419. Conveyance made with intent to avoid some duty or debt due by or incumbent on person making transfer.
In bankruptcy law, refers to a gift or transfer of the bankrupt’s property for little or no consideration at a time when the debtor is insolvent, or one which renders debtor’s capital unreasonably small, or one made by debtor who believes that he will not be able to meet maturing obligations, or one made with actual intent to hinder, delay or defraud his creditors. Such fraudulent conveyances may be avoided by the trustee. Bankruptcy Code § 548.
For a conveyance to be a "fraudulent conveyance” under Uniform Fraudulent Conveyance Act, there must be actual intent to hinder, delay, or defraud creditors, or grantor must be insolvent or be rendered insolvent by conveyance, and conveyance must be made without fair consideration. Georgia-Pacific Corp. v. Lumber Products Co., Okl., 590 P.2d 661, 665, 100 A.L.R.3d 1. Many states have enacted this Uniform Act.
That's the definition of Fraudulent Conveyance in Black's Law Dictionary 6th Edition. Courtesy of Cekhukum.com.