[CLBS] Transfers by property settlement

[Randy French]

List mates

 

I have a client who, during the course of a marriage, had a spouse enter
into a lease of bare land (20 years plus 2 renewal options at 20 years each)
in spouse's name only.  There is a prohibition on transfer of the lease.
The lease was community property.

 

Client and Spouse, mostly spouse, built a several hundred thousand dollar
building on the ground and operate a business from it.  In the course of the
divorce, the parties divided the community property between them and Client
got the building and the business.  

 

Landowner/Lessor (on the lease of land only) now asserts that the property
settlement agreement and documents to effectuate the property settlement
agreement constitute a transfer which is prohibited by the lease, allowing
the Landowner/Lessor to  terminate the lease and just incidentally get a
several hundred thousand dollar building for free.

 

I am of the opinion that the lease as community property is not transferred
as a result of the property settlement agreement and the documents to
effectuate the property settlement agreement.  It seems to me that this
would be a forfeiture which the law would abhor.  

 

Do you have any insight or thoughts on the issues?  I would like to hear
from anybody who has encountered this or any similar situation or otherwise
has some insight.

 

Thanks for your help.

 

 

 

Randy French

 

 

 

 

Law Office of Randal J. French, P.C.

Attorneys at Law

tP.O. Box 836 tBoise, ID 83701 t(208) 859-6881  

 

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