The separation of property between spouses is a legally recognized process, allowing them to transfer assets. However, what happens when this separation is done with fraudulent intent? In the case of Kathryn and Paul Holland, creditors accused the couple of fraudulently dividing their assets to avoid payment. The creditors filed a motion to intervene in the divorce proceedings, alleging that the Hollands knew about pending civil lawsuits against them. Despite their objections, the trial court granted the motion filed by Ms. Holland, prompting the creditors to appeal the decision. The following post summarizes the appeal.
DeRamus and David Hodge filed a sexual battery lawsuit against Paul Holland, who was married to Kathryn Holland. Hodge died before the matter was settled. The trial court awarded one hundred thousand dollars in damages to DeRamus and the Estate of David Hodge. Before the lawsuit’s completion, Holland pled guilty to sexual battery in a different lawsuit and was sentenced to twenty-two years in prison. Mr. and Mrs. Holland separated during this time and sought to divide their assets with a separation of property agreement. Ms. Holland filed for divorce based on Mr. Holland’s felony conviction. Her petition was granted.
The creditors filed a Motion to Intervene in the divorce proceedings in which they alleged the Hollands knew of the civil lawsuits against them and sold their assets to avoid payment. Ms. Holland filed a motion arguing there was no cause of action. The trial court granted her motion, which prompted an appeal from the creditors.