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Litigation

Can I undo a transfer of assets a debtor made to avoid paying my judgment in Ontario?

TSL Written by the Treadstone Law team· Updated August 2026

Yes — Ontario law allows a creditor to challenge a transfer of assets made by a debtor with the intent to defeat, hinder, or delay creditors, sometimes called a fraudulent conveyance. If a debtor sells, gifts, or otherwise moves an asset out of their own name specifically to keep it out of a creditor's reach, a court can potentially set that transfer aside, effectively treating the asset as still available to satisfy the judgment, even though it's now formally in someone else's name.

Proving this generally requires showing the transfer was made with the improper intent to avoid paying a debt, rather than for a genuine, unrelated reason. Timing matters a great deal: a transfer made after a debt arose, especially close in time to a lawsuit or judgment, and made for little or no real payment, or to a family member or closely connected person, tends to look far more suspicious than an arm's-length transaction made well before any dispute existed. A creditor pursuing this route generally needs to gather evidence about the circumstances and timing of the transfer, and bring a separate legal proceeding specifically targeting it, since simply believing a transfer was suspicious isn't enough on its own to unwind it.

Key takeaways

  • Transfers made with intent to defeat creditors can potentially be set aside by a court.
  • The core issue is the debtor's intent behind the transfer, not just that it happened.
  • Timing, lack of real payment, and transfers to family members tend to raise suspicion.
  • Unwinding a suspicious transfer generally requires its own legal proceeding and supporting evidence.
This is general information, not legal advice. It doesn’t create a lawyer–client relationship, and the rules can change. For advice on your situation, a Treadstone litigation lawyer can help.
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