A married couple, James and Karen, purchase a home in Lake Oswego, Oregon. The deed is recorded as 'James and Karen, husband and wife, as joint tenants.' James later files for divorce. Before the divorce is finalized, James executes a deed conveying his interest in the home to his brother without Karen's knowledge. Karen argues the conveyance is invalid. Under Oregon law, which of the following is most accurate?
Correct Answer
D) The conveyance is valid but automatically severs the joint tenancy, making Karen and James's brother tenants in common.
Under Oregon law, a joint tenant may unilaterally convey their interest to a third party, and doing so severs the joint tenancy. Oregon is a common law state and does not recognize tenancy by the entirety, so James's interest as a joint tenant is transferable. The conveyance to his brother is valid and severs the joint tenancy, converting the ownership to a tenancy in common between Karen and James's brother. Whether a divorce court automatic temporary restraining order (ATRO) applies depends on whether one was issued in the specific case — Oregon courts may issue such orders, but they are not automatically imposed in all divorces statewide.
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Related Topics & Key Terms
Key Terms:
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