In Re Robert J. FUTORAN, Debtor. Robert J. FUTORAN, Appellant, v. Max H. RUSH, Trustee in Bankruptcy, Appellee
Opinion
Opinion
Farris, J.
The issue in this case is whether a $290,-000 payment to Dayle Futoran by her ex-husband Robert Futoran in exchange for the cancellation of their marital termination agreement was a preference recoverable by Max Rush, the Chapter 7 trustee of Robert’s estate.
BACKGROUND
The Futorans entered into a marital termination agreement that became effective on January 1,1987. The husband agreed to pay the wife $6,000 per month until either the wife’s remarriage, the death of either of the two, or May 24, 1995, whichever came first. On May 1,1990, in exchange for the cancellation of this agreement, the husband paid the wife $290,000, an amount he derived by discounting the expected stream of future payments to present value. The husband acquired the $290,000 by selling partnership interests to Hernando Sanchez, a friend of his girlfriend, Margaret Thoma. On May 8, 1990, at the husband’s request, the wife paid the $290,000 to Thoma, who in turn transferred it to Sanchez. The husband filed for bankruptcy protection on May 14, 1990.
On May 13, 1992, the trustee brought an adversary proceeding in the United States Bankruptcy Court for the Central District of California seeking recovery of…