Florida Statute 726.105
“Transfers fraudulent as to present and future creditors”
What it means
Section 726.105 defines transfers and obligations that are fraudulent as to present and future creditors. A transfer or obligation is fraudulent as to a creditor, whether the claim arose before or after it, if the debtor made it in one of two ways.
First, with actual intent to hinder, delay, or defraud any creditor. Second, without receiving a reasonably equivalent value in exchange, if the debtor was engaged or about to engage in a business or transaction for which the remaining assets were unreasonably small, or intended to incur, or believed or reasonably should have believed they would incur, debts beyond ability to pay as they became due.
To decide actual intent, a court may consider, among other factors, eleven listed in subsection (2), including whether the transfer was to an insider, the debtor kept possession or control, the transfer was concealed, the debtor had been sued or threatened with suit, it was of substantially all assets, the debtor absconded or removed or concealed assets, or the debtor was or became insolvent.
- A transfer is fraudulent as to a creditor whether the creditor's claim arose before or after the transfer. (§ 726.105(1))
- Actual intent to hinder, delay, or defraud any creditor makes a transfer or obligation fraudulent. (§ 726.105(1)(a))
- So does a transfer without reasonably equivalent value where the debtor's assets were unreasonably small or the debtor expected debts beyond ability to pay. (§ 726.105(1)(b))
- Subsection (2) lists eleven factors that may be considered in determining actual intent, including insider transfers and concealment. (§ 726.105(2)(a)-(k))
- A creditor may obtain avoidance and other remedies, subject to the time limits in s. 726.110. (§ 726.108(1); § 726.110)
Text of the statute (2026)
(1) A transfer made or obligation incurred by a debtor is fraudulent as to a creditor, whether the creditor’s claim arose before or after the transfer was made or the obligation was incurred, if the debtor made the transfer or incurred the obligation: (a) With actual intent to hinder, delay, or defraud any creditor of the debtor; or (b) Without receiving a reasonably equivalent value in exchange for the transfer or obligation, and the debtor: 1. Was engaged or was about to engage in a business or a transaction for which the remaining assets of the debtor were unreasonably small in relation to the business or transaction; or 2. Intended to incur, or believed or reasonably should have believed that he or she would incur, debts beyond his or her ability to pay as they became due.
(2) In determining actual intent under paragraph (1)(a), consideration may be given, among other factors, to whether: (a) The transfer or obligation was to an insider. (b) The debtor retained possession or control of the property transferred after the transfer. (c) The transfer or obligation was disclosed or concealed. (d) Before the transfer was made or obligation was incurred, the debtor had been sued or threatened with suit. (e) The transfer was of substantially all the debtor’s assets. (f) The debtor absconded. (g) The debtor removed or concealed assets. (h) The value of the consideration received by the debtor was reasonably equivalent to the value of the asset transferred or the amount of the obligation incurred. (i) The debtor was insolvent or became insolvent shortly after the transfer was made or the obligation was incurred. (j) The transfer occurred shortly before or shortly after a substantial debt was incurred. (k) The debtor transferred the essential assets of the business to a lienor who transferred the assets to an insider of the debtor.
Excerpts are the subsections the summary relies on. Read the full official text of § 726.105.
History. s. 5, ch. 87-79; s. 937, ch. 97-102.
How it applies
Section 726.105 applies to a transfer made or an obligation incurred by a debtor, whether the creditor's claim arose before or after it. The factors in subsection (2) are not exclusive. Under 726.105(1), a transfer without reasonably equivalent value is reviewed under the second test only if the debtor's assets or debt-paying ability meet 726.105(1)(b)1 or 2. Time limits for bringing a claim are in s. 726.110, and available remedies are in s. 726.108.
Questions people ask
Sources
- Florida Statutes s. 726.105 (2026), Florida Senate (“whether the creditor’s claim arose before or after the transfer was made or the obligation was incurred”)
- Florida Statutes s. 726.108 (2026), Florida Senate (Creditor remedies: avoidance of the transfer or obligation to the extent necessary to satisfy the claim.)
- Florida Statutes s. 726.110 (2026), Florida Senate (Cause of action extinguished unless brought within 4 years after the transfer, or within 1 year after discovery if later (s. 726.105(1)(a)).)
Last checked: October 17, 2026
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