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Case Involving Garnishment of Community Property

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By FindLaw Staff on May 18, 2010 1:18 PM

US v. Loftis, No. 09-10482, concerned defendant's appeal from the district court's order of garnishment, which set aside a community property partition agreement entered into between defendant and her husband.  The court of appeals affirmed the order, on the grounds that 1) the partition agreement was clearly voidable as a fraudulent transfer under 28 U.S.C. section 3304(b)(1)(B)(ii); and 2) the district court was correct to treat the couple's assets as jointly managed property.

As the court wrote:  "Lisa Loftis ("Lisa") appeals the district court's Final Order of Garnishment, which set aside a community property partition agreement entered into between Lisa and her husband, Todd Loftis ("Todd"). She contends that the district court erroneously found the partition agreement to be a fraudulent transfer, and she challenges the scope of the garnishment ordered. We reject her arguments and affirm."

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