Legal Question in Family Law in Oregon

Re: Devorce...

QUESTION # 1:

If a house it bought before the marriage, and the deed is not cosigned by the spouse. its the house split?

ANSWER: Yes, maybe. Depends on substance, not form. For example, if the other spouse made a significant money contribution to the down payment to acquire the house, it would probably be considered as marital property for divorce purposes, even if her name is not on the deed. Also, and in any event, the increase in the value of separately owned property that occurred during the years of marriage is, by itself, considered as a marital asset that is to be shared equally between the spouses.

QUESTION # 2:

If the house is bought before the marriage and the deed is only signed by the spouse who bought it. can that spouse sign the deed over to a friend to avoid to prevent the house from being split?

ANSWER:

Yes. BUT.....Doing this may trigger a "due on transfer" clause of a mortgage obligation, causing the bank or mortgage company to demand full and immediate payment of the entire mortgage balance. (In essence, without the bank's approval, you generally cannot transfer the property without paying off the existing mortgage balance.) Also, such a transfer, if done for less then full value, and if it appears to have been done for the purpose of removing the property from being included in the marital estate for divorce purposes, could be declared a "fraudulent transanction" and declare as null and void.

Advice: Don't do it.

L.D. Gorin