Wisconsin Legislative Council
ACT MEMO
One Ea st Ma in Stre e t, Suite 401 • Ma dison, W I 53703 • (608) 266-1304 • le g.council@le gis.wisconsin.gov • http://www.le gis.wisconsin.gov/lc
Prepared by: Dan Schmidt, Deputy Director March 28, 2024
2023 Wisconsin Act 246
[2023 Senate Bill 450]
Modifications to the Uniform
Fraudulent Transactions Act
CURRENT LAW
The Uniform Fraudulent Transactions Act (UFTA), currently codified as ch. 242, Stats., permits a
creditor to challenge certain transfers of assets by a debtor that are intended to deprive the creditor of
assets that would otherwise be available if the debtor is or were to become insolvent. The UFTA was
originally adopted in Wisconsin in 1988.
2023 WISCONSIN ACT 246
2023 Wisconsin Act 246 modifies the current UFTA as follows:
The act renames the UFTA the Uniform Voidable Transactions Law (UVTL) and replaces the term
fraudulent with voidable throughout.
The act allocates the burden of proof for claims and defenses related to UVTL and defines the
standard of proof as a preponderance of the evidence.
The act creates a choice-of-law rule for courts to determine which state’s voidable transactions law
applies. Under the act, a court must apply the law of the state where the debtor is located at the time
the transfer is made or obligation incurred.
The act eliminates the special definition of insolvency for partnerships, making partnerships subject
to the same general definition as any other party governed by the UVTL.
More information regarding the UVTL and its background is available on the Uniform Law Commission
website.
Effective date: March 28, 2023
For a full history of the bill, visit the Legislature’s bill history page .
DWS:jal