Explaining Oregon Law - Protecting Assets While Divorcing

How does a spouse protect his or her assets from the other spouse during a divorce?

Oregon law provides a “restraining order” prohibiting a spouse from canceling insurance or spending the couples’ assets except for the normal course of business during a divorce.

Once a spouse files a divorce, that spouse is restrained from spending money except in the normal course of the couple’s spending. The restraining order on the other spouse goes into effect once the spouse is served the Summons and Petition for Dissolution.

If a spouse sells a car, or other asset, after the divorce is filed, he or she could be liable to the other spouse for some amount of money. The courts have a great amount of latitude in setting a penalty. On the other hand, if both parties agree in writing to sell the car, and there is an accounting, then the spouse can sell the car. If a spouse is a car dealer, and buying and selling car is part of his or her business, then selling the car will not incur a penalty.

The rule does not cover extraordinary expenses for emergency medical care for a child. If one spouse refuses to consent to the transfer, the other spouse can go to court to get a court Order allowing the transfer. The restraining order terminates once the final divorce judgment becomes final, i.e., is signed by the court and entered into the court register.

It should also be noted that either spouse can go to court to dispute the imposition of the statutory restraining order by filing a Request for Hearing.