Also known as: divest · divests · divested · divesting · divestments · divestiture · divestitures
Written by attorneys · grounded in primary & secondary sources — see below
A future interest that terminates a prior estate in property upon the occurrence of a stated event before the estate's natural expiration.
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Diego Duarte conveyed Blackacre to his son for life, then to the son's heirs, but if the land was ever used for commercial purposes title would pass immediately to a conservation trust. When the son later leased the property to a developer for a shopping center, the trust's interest became possessory and cut short the son's estate before its natural end.
Dustin Donovan appointed an agent to negotiate leases on a specific oil field. After Donovan sold the entire leasehold interest to another company, the agent signed new leases purporting to bind Donovan. Because Donovan had already divested his interest in the field, the agent's authority terminated and the leases did not bind him.
Doris Duffy devised land to her niece for life with remainder to the niece's children, but if any child ever mortgaged the property the interest would shift to a charity. When one child later mortgaged his share, the charity's executory interest divested that share before the life estate ended.
Darius Dixon received a stadium subject to the condition that it be used only for professional sports. Upon any other primary use title would pass to the original city owner. After the corporation began hosting mostly concerts, the city's shifting interest divested the corporation's estate.
Diana Delgado received a cottage in fee simple subject to an executory limitation that if she died without surviving descendants title would pass to a maritime company. Upon her death without issue the company's interest divested the fee and vested in the company.
Damian Decker's company sold its remaining operating interest in an oil field while retaining only a royalty. An agent who had been authorized to lease that field then executed new leases in the company's name. The prior divestiture of the operating interest terminated the agent's authority over the field.
Divestment cuts short a prior estate upon a stated event before its normal termination, whereas natural expiration occurs at the end of the estate's stipulated duration without any cutting short.
An agent's actual authority to act on a particular subject ends automatically when the principal completely divests itself of any interest in that subject matter, leaving nothing for the agent to affect.
No. A remainder cannot divest any interest except one left in the transferor. An interest that divests a simultaneously created estate in a transferee is instead classified as an executory interest.
…of St. Louis praying that petitioners Shelley be restrained from taking possession of the property and that judgment be entered divesting title out of petitioners Shelley and revest-ing title in the immediate grantor or in such other person as the court should direct. The trial court denied the requested relief on the ground…