diff --git a/lib/server.js b/lib/server.js
index 7957f38..7855e0c 100644
--- a/lib/server.js
+++ b/lib/server.js
@@ -203,7 +203,7 @@ WalletService.prototype._runLocked = function(cb, task) {
  * @param {number} opts.n - Total copayers.
  * @param {string} opts.pubKey - Public key to verify copayers joining have access to the wallet secret.
  * @param {string} [opts.network = 'livenet'] - The Bitcoin network for this wallet.
- * @param {string} [opts.derivationStrategy = 'BIP45'] - Strategy used for address derivation (BIP44, BIP45).
+ * @param {string} [opts.supportBIP44 = false] - Client supports BIP44 paths for 1-of-1 wallets.
  */
 WalletService.prototype.createWallet = function(opts, cb) {
   var self = this,
@@ -220,9 +220,8 @@ WalletService.prototype.createWallet = function(opts, cb) {
   if (!_.contains(['livenet', 'testnet'], opts.network))
     return cb(new ClientError('Invalid network'));
 
-  opts.derivationStrategy = opts.derivationStrategy || WalletUtils.DERIVATION_STRATEGIES.BIP45;
-  if (!_.contains(_.values(WalletUtils.DERIVATION_STRATEGIES), opts.derivationStrategy))
-    return cb(new ClientError('Invalid address derivation strategy'));
+  var derivationStrategy = (opts.n == 1 && opts.supportBIP44) ?
+    WalletUtils.DERIVATION_STRATEGIES.BIP44 : WalletUtils.DERIVATION_STRATEGIES.BIP45;
 
   try {
     pubKey = new PublicKey.fromString(opts.pubKey);
@@ -250,7 +249,7 @@ WalletService.prototype.createWallet = function(opts, cb) {
         n: opts.n,
         network: opts.network,
         pubKey: pubKey.toString(),
-        derivationStrategy: opts.derivationStrategy,
+        derivationStrategy: derivationStrategy,
       });
       self.storage.storeWallet(wallet, function(err) {
         log.debug('Wallet created', wallet.id, opts.network);
@@ -417,7 +416,7 @@ WalletService.prototype._addCopayerToWallet = function(wallet, opts, cb) {
     requestPubKey: opts.requestPubKey,
     signature: opts.copayerSignature,
     customData: opts.customData,
-    derivationStrategy: opts.derivationStrategy,
+    derivationStrategy: wallet.derivationStrategy,
   });
   self.storage.fetchCopayerLookup(copayer.id, function(err, res) {
     if (err) return cb(err);
@@ -563,7 +562,6 @@ WalletService.prototype._clientSupportsTXPv2 = function() {
  * @param {string} opts.requestPubKey - Public Key used to check requests from this copayer.
  * @param {string} opts.copayerSignature - S(name|xPubKey|requestPubKey). Used by other copayers to verify that the copayer joining knows the wallet secret.
  * @param {string} opts.customData - (optional) Custom data for this copayer.
- * @param {string} [opts.derivationStrategy = 'BIP45'] - Strategy used for address derivation (BIP44, BIP45).
  */
 WalletService.prototype.joinWallet = function(opts, cb) {
   var self = this;
@@ -574,21 +572,11 @@ WalletService.prototype.joinWallet = function(opts, cb) {
   if (_.isEmpty(opts.name))
     return cb(new ClientError('Invalid copayer name'));
 
-  opts.derivationStrategy = opts.derivationStrategy || WalletUtils.DERIVATION_STRATEGIES.BIP45;
-  if (!_.contains(_.values(WalletUtils.DERIVATION_STRATEGIES), opts.derivationStrategy))
-    return cb(new ClientError('Invalid address derivation strategy'));
-
   self.walletId = opts.walletId;
   self._runLocked(cb, function(cb) {
     self.storage.fetchWallet(opts.walletId, function(err, wallet) {
       if (err) return cb(err);
       if (!wallet) return cb(Errors.WALLET_NOT_FOUND);
-      if (wallet.addressManager.derivationStrategy != opts.derivationStrategy) {
-        if (!self._clientSupportsBIP44()) {
-          return cb(new ClientError(Errors.codes.UPGRADE_NEEDED, 'To join this wallet, you need to upgrade your client app.'));
-        }
-        return cb(new ClientError('Incompatible address derivation strategy'));
-      }
 
       var hash = WalletUtils.getCopayerHash(opts.name, opts.xPubKey, opts.requestPubKey);
       if (!self._verifySignature(hash, opts.copayerSignature, wallet.pubKey)) {
@@ -1222,7 +1210,7 @@ WalletService.prototype.createTx = function(opts, cb) {
           requiredRejections: Math.min(wallet.m, wallet.n - wallet.m + 1),
           walletN: wallet.n,
           excludeUnconfirmedUtxos: !!opts.excludeUnconfirmedUtxos,
-          derivationStrategy: wallet.addressManager.derivationStrategy,
+          derivationStrategy: wallet.derivationStrategy,
           customData: opts.customData
         };
 
diff --git a/test/integration/server.js b/test/integration/server.js
index 54f71e6..2f11bea 100644
--- a/test/integration/server.js
+++ b/test/integration/server.js
@@ -101,21 +101,19 @@ helpers.createAndJoinWallet = function(m, n, opts, cb) {
     m: m,
     n: n,
     pubKey: TestData.keyPair.pub,
-    derivationStrategy: opts.derivationStrategy || 'BIP44',
+    supportBIP44: !!opts.supportBIP44,
   };
   server.createWallet(walletOpts, function(err, walletId) {
     if (err) return cb(err);
 
     async.each(_.range(n), function(i, cb) {
       var copayerData = TestData.copayers[i + offset];
-      var bip = opts.derivationStrategy || 'BIP44';
       var copayerOpts = helpers.getSignedCopayerOpts({
         walletId: walletId,
         name: 'copayer ' + (i + 1),
-        xPubKey: bip == 'BIP44' ? copayerData.xPubKey_44H_0H_0H : copayerData.xPubKey_45H,
+        xPubKey: (n == 1 && !!opts.supportBIP44) ? copayerData.xPubKey_44H_0H_0H : copayerData.xPubKey_45H,
         requestPubKey: copayerData.pubKey_1H_0,
         customData: 'custom data ' + (i + 1),
-        derivationStrategy: bip,
       });
       server.joinWallet(copayerOpts, function(err, result) {
         should.not.exist(err);