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assets (balance sheet insolvency). The record is adequate for us
to find that, on the transfer date, Steven had substantial
liabilities.7 Respondent has failed to propose any finding of
fact with respect to the fair value of Steven’s assets. On
brief, respondent asks us conclude that Steven was insolvent on
the transfer date because, on that date: “Steven W. Van Aernam’s
income stream had dwindled to a trickle or had ceased altogether,
since he had been convicted on two federal crimes and was about
to be sentenced to a prison term.” Respondent states:
“Respondent has been unable to locate assets in Steven W. Van
Aernam’s name whose value approaches his income tax liabilities”.
Petitioner credibly testified that Steven had assets on
the transfer date and afterwards: “[H]e had plenty of tools and
equipment, money to give his divorce lawyer, money to give his
lawyer at that time and then afterwards, even after he went into
jail-–that he gave money to have his appeal made, so I believe
that he definitely has money out there.”
Respondent has failed to carry his burden of proving
Steven’s balance sheet insolvency. Respondent’s statement on
brief that he has been unable to locate assets in Steven’s name,
unsupported by any testimony or other evidence concerning his
search, carries no weight. Respondent’s claim that Steven’s
income may have slowed to a trickle or stopped is also of no
7 Respondent claims that Steven owed approximately $364,000
to the State of Florida and the Internal Revenue Service.
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