Roosevelt

We are asked to decide when a transfer is to be deemed “made” for the purposes of 11 U.S.C. § 727 (a)(2), which denies discharge to a debtor who transfers property with the “intent to hinder, delay, or defraud” within one year of filing his petition in Bankruptcy Court. We hold that a transfer is “made” once it is effective as between the parties to the transfer.

I.

Steven and Judy Roosevelt, a married couple, purchased a house on Green Oak Lane in Glendora, California (hereinafter “Glendora property”) on August 9, 1984, and took title as joint tenants. On June 10,1989, when the Roosevelts were having marital difficulties, they signed and executed a Marital Agreement. The Agreement divided all of the couple’s community property and specifically provided that the Glendora property would be transmuted into Judy’s separate property. The Bankruptcy Appellate Panel determined that Steven made this transfer with the “intent to hinder, delay, or defraud” his creditors.

Notwithstanding Steven’s June 1989 transfer of his interest in the Glendora property, he joined Judy in executing two deeds of trust on the property on December 18, 1989-the first in favor of Frances Miles in exchange…