Leutermann v. Aschermann

Decided October 24, 1916

Wisconsin Supreme Court · decided 1916-10-24

0. Ludwig, Circuit Judge. The case is this: A receiver appointed in supplementary proceedings brings the action to set aside, because fraudulent as to creditors, a transfer of a $5,000 legacy made by the judgment debtor to one of the defendants in consideration of a conveyance of certain real estate which .the debtor immediately made his homestead.

Relies on Scofield v. Hopkins · Comstock v. Bechtel · Scott v. Holman

Reversed · Decided 1916-10-24

WiNsnow, C. J.

¶1The judgment must be reversed because : First, a man may, in good faith, purchase a homestead *163and use uonexempt property or money for that purpose even although he be indebted at the time. Scofield v. Hopkins, 61 Wis. 370, 21 N. W. 259; Scott v. Holman, 117 Wis. 206, 94 N. W. 30. Second, even if he makes the purchase with the intention of defeating his creditors, the transaction cannot be set aside unless it is shown that the other party had notice of or participated in the fraudulent intent of the debtor. Sec. 2324, Stats.

¶2The case of Comstock v. Bechtel, 63 Wis. 656, 24 N. W. 465, when properly read does not lay down any contrary doctrine.

¶3By the Gourt. — Judgment reversed, and action remanded with directions to dismiss the complaint.