Dissolution Basics Bob Brandon OLTA 2017

Focus: Property Interests of the spouses during and after the dissolution proceedings Effect and duration of monetary judgments arising out of the proceedings

Petition for Dissolution

Petition for Dissolution Upon filing the petition: Species of co-ownership: The filing of the petition for dissolution creates a “species of co-ownership” in all assets the parties own at the date the decree is filed. ORS 107.105 (1)(f)(E). The filling of the petition does not change the survivorship rights between the parties in the co-owned assets.

Petition for Dissolution Statutory Restraining Order: Once the petition is filed there is a statutory restraining order that prevents the parties from : Transferring, encumbering, concealing or disposing of property in which the other party has an interest, in any manner, without written consent of the other party or an order of the court, except in the usual course of business or for necessities of life. ORS 107.093 (2)(c).

Petition for Dissolution The Plain English version of those two slides: Both spouses have an interest in all assets regardless if the asset is owned by both spouses or only one spouse. This includes assets that the individual spouse may have owned prior to the marriage. One spouse cannot sell real property without the other spouse’s consent nor use martial funds to buy real property without the other spouse’s consent.

Petition for Dissolution Basically, everything the divorcing spouses own is subject to the dissolution proceedings.

Petition for Dissolution Temporary Judgments: A court can enter temporary judgments for spousal support, child support or other items during the dissolution proceedings. A court can enter a restraining order preventing either party from encumbering or disposing of martial assets. A court can enter an order allowing one party to have the use or possession of an marital asset.

Petition for Dissolution A temporary judgment is a lien on real property.

Petition for Dissolution Removing Temporary Judgment Liens Satisfaction filed in Dissolution Court Case Inclusion of any unpaid amounts into the General Judgment of Dissolution

Decree of Dissolution

Decree of Dissolution Division of Martial Assets Award of Support Judgments Award of Property Equalization Judgments Award for Attorney Fees, Costs, or other Items Lots of other things not directly related to the ownership of real property

Decree of Dissolution Division of Assets The Dissolution Judgment can change the ownership interest of the parties in an asset. The Judgment can also change how the parties co-own the property. For example, after the decree is entered, the parties may continue to co-own the property. However they will co-own as Tenants in Common rather than Tenants by the Entirety.

Decree of Dissolution Division of Assets “The property division ordered shall be deemed effective for all purposes.” ORS 107.105 (3). A judgment transfers ownership in property in the same manner as a deed or other conveyance document.

HOWEVER,

Decree of Dissolution ORS 93.643 states that in order to provide constructive notice of an interest in real property, a person must have documentation of that interest in the County Clerk’s records for the county that the property is located. “Such recordation, and no other record, constitutes constructive notice to any person of the existence of the interest….”

Decree of Dissolution Plain English Version Any change in the ownership of real property due to a decree or judgment of dissolution must be recorded in the county clerk’s real property records.

Decree of Dissolution Methods to provide record notice of the dissolution: Record a lis pendency with a complete legal description when the petition is filed; Record a certified copy of the dissolution decree provided the decree has a complete legal description; or The ex-spouses execute and record deeds to transfer their interests according to the decree.

3 Main types of Judgments: Property Equalization Spousal Support Decree of Dissolution Monetary judgments created by the Decree of Dissolution attach to the real property in the same manner that other monetary judgments attach to the real property. 3 Main types of Judgments: Property Equalization Spousal Support Child Support

Decree of Dissolution Duration of Judgment Liens Property Equalization: 10 years from date the award is due or the even that triggers the payment obligation. Spousal Support: 25 years from the date the judgment is entered or 10 years after the installment due date

Decree of Dissolution Child Support Judgments: 35 years from the date the judgment was entered for all judgments entered after January 1, 1994. For Judgments prior to January 1, 1994, 10 years from the date of entry with the option to extend for an additional to 10 years.

Other Divorce Related Liens Judgment for Costs, Fees, or other items in the Decree: Any judgment in the decree that is not for support or a property equalization award is a lien on the property for 10 years with the option to extend for an additional 10 years. Attorney’s Liens: A recorded Attorney’s Lien is a lien on property or a monetary judgment awarded to the debtor for one year from the date of recording. Out of State Support Judgments: If the judgment is recorded or transcribed to Oregon, the judgment lien expires when the judgment expires in the state of entry.

The End!