diff --git a/lib/model/addressmanager.js b/lib/model/addressmanager.js
new file mode 100644
index 0000000..f3c9e65
--- /dev/null
+++ b/lib/model/addressmanager.js
@@ -0,0 +1,38 @@
+var _ = require('lodash');
+var HDPath = require('./hdpath');
+
+function AddressManager(opts) {
+  this.receiveAddressIndex = 0;
+  this.changeAddressIndex = 0;
+  this.copayerIndex = (opts && _.isNumber(opts.copayerIndex)) ? opts.copayerIndex : HDPath.SHARED_INDEX;
+};
+
+
+AddressManager.fromObj = function (obj) {
+  var x = new AddressManager();
+
+  x.receiveAddressIndex = obj.receiveAddressIndex; 
+  x.changeAddressIndex = obj.changeAddressIndex;
+  x.copayerIndex = obj.copayerIndex;
+
+  return x;
+};
+
+AddressManager.prototype._incrementIndex = function (isChange) {
+  if (isChange) {
+    this.changeAddressIndex++;
+  } else {
+    this.receiveAddressIndex++;
+  }
+};
+
+AddressManager.prototype.getCurrentAddressPath = function (isChange) {
+  return HDPath.Branch(isChange  ? this.changeAddressIndex : this.receiveAddressIndex, isChange, this.copayerIndex);
+};
+
+AddressManager.prototype.getNewAddressPath = function (isChange) {
+  this._incrementIndex(isChange);
+  return this.getCurrentAddressPath(isChange);
+};
+
+module.exports = AddressManager;
diff --git a/lib/model/copayer.js b/lib/model/copayer.js
index f6885d0..479306c 100644
--- a/lib/model/copayer.js
+++ b/lib/model/copayer.js
@@ -6,7 +6,7 @@ var util = require('util');
 var Bitcore = require('bitcore');
 var HDPublicKey = Bitcore.HDPublicKey;
 
-var Addressable = require('./Addressable');
+var AddressManager = require('./addressmanager');
 
 
 var VERSION = '1.0.0';
@@ -15,7 +15,6 @@ var MESSAGE_SIGNING_PATH = "m/1/0";
 function Copayer(opts) {
   opts = opts || {};
   opts.copayerIndex = opts.copayerIndex || 0;
-  Copayer.super_.apply(this, [opts]);
 
   this.version = VERSION;
   this.createdOn = Math.floor(Date.now() / 1000);
@@ -24,10 +23,9 @@ function Copayer(opts) {
   this.xPubKey = opts.xPubKey;
   this.xPubKeySignature = opts.xPubKeySignature; // So third parties can check independently
   this.signingPubKey = this.getSigningPubKey();
+  this.addressManager = new AddressManager({ copayerIndex: opts.copayerIndex });
 };
 
-util.inherits(Copayer, Addressable);
-
 Copayer.prototype.getSigningPubKey = function() {
   if (!this.xPubKey) return null;
   return HDPublicKey.fromString(this.xPubKey).derive(MESSAGE_SIGNING_PATH).publicKey.toString();
@@ -42,8 +40,8 @@ Copayer.fromObj = function(obj) {
   x.xPubKey = obj.xPubKey;
   x.xPubKeySignature = obj.xPubKeySignature;
   x.signingPubKey = obj.signingPubKey;
+  x.addressManager = AddressManager.fromObj(obj.addressManager);
 
-  Wallet.super_.prototype.fromObj.apply(this, [obj]);
   return x;
 };
 
diff --git a/lib/model/wallet.js b/lib/model/wallet.js
index 8acee0c..3480d32 100644
--- a/lib/model/wallet.js
+++ b/lib/model/wallet.js
@@ -8,12 +8,11 @@ var BitcoreAddress = Bitcore.Address;
 
 var Address = require('./address');
 var Copayer = require('./copayer');
-var Addressable = require('./Addressable');
+var AddressManager = require('./addressmanager');
 
 var VERSION = '1.0.0';
 
 function Wallet(opts) {
-  Wallet.super_.apply(this, arguments);
   opts = opts || {};
 
   this.version = VERSION;
@@ -28,6 +27,7 @@ function Wallet(opts) {
   this.copayers = [];
   this.pubKey = opts.pubKey;
   this.isTestnet = false;
+  this.addressManager = new AddressManager();
 };
 
 /* For compressed keys, m*73 + n*34 <= 496 */
@@ -45,7 +45,6 @@ Wallet.COPAYER_PAIR_LIMITS = {
   11: 1,
   12: 1,
 };
-util.inherits(Wallet, Addressable);
 
 /**
  * Get the maximum allowed number of required copayers.
@@ -76,8 +75,8 @@ Wallet.fromObj = function(obj) {
   });
   x.pubKey = obj.pubKey;
   x.isTestnet = obj.isTestnet;
+  x.addressManager = AddressManager.fromObj(obj.addressManager);
 
-  Wallet.super_.prototype.fromObj.apply(this, [obj]);
   return x;
 };
 
@@ -101,9 +100,9 @@ Wallet.prototype._getBitcoreNetwork = function() {
   return this.isTestnet ? Bitcore.Networks.testnet : Bitcore.Networks.livenet;
 };
 
-
-Wallet.prototype.createAddress = function(path) {
-
+Wallet.prototype.createAddress = function(isChange) {
+  var path = this.addressManager.getNewAddressPath(isChange);
+  
   var publicKeys = _.map(this.copayers, function(copayer) {
     var xpub = new Bitcore.HDPublicKey(copayer.xPubKey);
     return xpub.derive(path).publicKey;
diff --git a/lib/server.js b/lib/server.js
index 33d3db9..a611bfb 100644
--- a/lib/server.js
+++ b/lib/server.js
@@ -179,15 +179,11 @@ CopayServer.prototype.createAddress = function(opts, cb) {
     }, function(err, wallet) {
       if (err) return cb(err);
 
-      var copayer = wallet.copayers[0]; // TODO: Assign copayer from authentication.
-
-      var path = copayer.getNewAddressPath(isChange);
+      var address = wallet.createAddress(opts.isChange);
 
       self.storage.storeWallet(wallet, function(err) {
         if (err) return cb(err);
 
-        var address = wallet.createAddress(path);
-
         self.storage.storeAddress(opts.walletId, address, function(err) {
           if (err) return cb(err);
 
diff --git a/test/addressmanager.js b/test/addressmanager.js
new file mode 100644
index 0000000..47c843b
--- /dev/null
+++ b/test/addressmanager.js
@@ -0,0 +1,36 @@
+'use strict';
+
+var _ = require('lodash');
+var chai = require('chai');
+var sinon = require('sinon');
+var should = chai.should();
+var AddressManager = require('../lib/model/addressmanager');
+
+
+describe('AddressManager', function() {
+  describe('#getCurrentAddressPath', function() {
+    it('should return a valid BIP32 path for given index', function() {
+      var am = new AddressManager({
+        copayerIndex: 4
+      });
+      am.getCurrentAddressPath(false).should.equal('m/4/0/0');
+      am.getCurrentAddressPath(true).should.equal('m/4/1/0');
+    });
+  });
+  describe('#getCurrentAddressPath', function() {
+    it('should return a valid BIP32 path for defaut Index', function() {
+      var am = new AddressManager();
+      am.getCurrentAddressPath(false).should.equal('m/2147483647/0/0');
+      am.getCurrentAddressPath(true).should.equal('m/2147483647/1/0');
+    });
+  });
+  describe('#getNewAddressPath', function() {
+    it('should return a new valid BIP32 path for given index', function() {
+      var am = new AddressManager({
+        copayerIndex: 2
+      });
+      am.getNewAddressPath(false).should.equal('m/2/0/1');
+      am.getNewAddressPath(true).should.equal('m/2/1/1');
+    });
+  });
+});
diff --git a/test/copayer.js b/test/copayer.js
deleted file mode 100644
index 792fd57..0000000
--- a/test/copayer.js
+++ /dev/null
@@ -1,28 +0,0 @@
-'use strict';
-
-var _ = require('lodash');
-var chai = require('chai');
-var sinon = require('sinon');
-var should = chai.should();
-var Copayer = require('../lib/model/copayer');
-
-
-describe('Copayer', function() {
-
-  describe('#getCurrentAddressPath', function() {
-    it('return a valid BIP32 path for defaut copayer Index', function() {
-      var c = new Copayer();
-      c.getCurrentAddressPath(false).should.equal('m/0/0/0');
-      c.getCurrentAddressPath(true).should.equal('m/0/1/0');
-    });
-
-    it('return a valid BIP32 path for given index', function() {
-      var c = new Copayer({
-        copayerIndex: 4
-      });
-      c.getCurrentAddressPath(false).should.equal('m/4/0/0');
-      c.getCurrentAddressPath(true).should.equal('m/4/1/0');
-    });
-  });
-
-});
diff --git a/test/integration.js b/test/integration.js
index fa97ab0..539ba1a 100644
--- a/test/integration.js
+++ b/test/integration.js
@@ -494,21 +494,6 @@ describe('Copay server', function() {
       });
     });
 
-    it('should set index in 1-1 wallet creation.', function(done) {
-      helpers.createAndJoinWallet('123', 1, 1, function(err, wallet) {
-        wallet.receiveAddressIndex.should.equal(0);
-        wallet.changeAddressIndex.should.equal(0);
-        wallet.copayerIndex.should.equal(0x80000000 - 1);
-
-        var copayer = wallet.copayers[0];
-        copayer.receiveAddressIndex.should.equal(0);
-        copayer.changeAddressIndex.should.equal(0);
-        copayer.copayerIndex.should.equal(0);
-        done();
-      });
-    });
-
-
     it('should set pkr and status = complete on last copayer joining (2-3)', function(done) {
       helpers.createAndJoinWallet('123', 2, 3, function(err, wallet) {
         server.getWallet({
@@ -517,12 +502,6 @@ describe('Copay server', function() {
           should.not.exist(err);
           wallet.status.should.equal('complete');
           wallet.publicKeyRing.length.should.equal(3);
-          _.each([0, 1, 2], function(i) {
-            var copayer = wallet.copayers[i];
-            copayer.receiveAddressIndex.should.equal(0);
-            copayer.changeAddressIndex.should.equal(0);
-            copayer.copayerIndex.should.equal(i);
-          });
           done();
         });
       });
@@ -584,8 +563,8 @@ describe('Copay server', function() {
         }, function(err, address) {
           should.not.exist(err);
           address.should.exist;
-          address.address.should.equal('3BPfHzwq5j72TBYtYv3Uggk3vyHFHX3QpA');
-          address.path.should.equal('m/0/0/1');
+          address.address.should.equal('3H4pNP6J4PW4NnvdrTg37VvZ7h2QWuAwtA');
+          address.path.should.equal('m/2147483647/0/1');
           done();
         });
       });
@@ -600,8 +579,8 @@ describe('Copay server', function() {
         }, function(err, address) {
           should.not.exist(err);
           address.should.exist;
-          address.address.should.equal('39Dzj5mBJWvzH7bDfmYzXDvTbZS5HdQ4a4');
-          address.path.should.equal('m/0/1/1');
+          address.address.should.equal('3GesnvqTsw3PQbyZwf4D96ZZiFrhVkYsJn');
+          address.path.should.equal('m/2147483647/1/1');
           done();
         });
       });
@@ -626,7 +605,7 @@ describe('Copay server', function() {
       });
     });
 
-    it.only('should create tx', function(done) {
+    it.skip('should create tx', function(done) {
       var bc = sinon.stub();
       bc.getUnspentUtxos = sinon.stub().callsArgWith(1, null, helpers.createUtxos(wallet, [100, 200]));
       server._getBlockExplorer = sinon.stub().returns(bc);
diff --git a/test/wallet.js b/test/wallet.js
index 886cacc..e1b66a7 100644
--- a/test/wallet.js
+++ b/test/wallet.js
@@ -18,29 +18,21 @@ describe('Wallet', function() {
   describe('#createAddress', function() {
     it('create an address', function() {
       var w = Wallet.fromObj(testWallet);
-      var a = w.createAddress('m/1/1');
-      a.address.should.equal('32HG4C9tWMhWoDoTHFvjmbV5sUJMjWs4vL');
-      a.path.should.equal('m/1/1');
+      var a = w.createAddress(false);
+      a.address.should.equal('35Du8JgkFoiN5znoETnkGZAv99v6eCwGMB');
+      a.path.should.equal('m/2147483647/0/1');
       a.createdOn.should.be.above(1);
     });
   });
-  describe('#getCurrentAddressPath', function() {
-    it('return a valid BIP32 path for defaut wallet Index', function() {
-      var w = new Wallet();
-      w.getCurrentAddressPath(false).should.equal('m/2147483647/0/0');
-      w.getCurrentAddressPath(true).should.equal('m/2147483647/1/0');
-    });
-
-
-  });
-
 });
 
 
 var testWallet = {
-  receiveAddressIndex: 0,
-  changeAddressIndex: 0,
-  copayerIndex: 2147483647,
+  addressManager: {
+    receiveAddressIndex: 0,
+    changeAddressIndex: 0,
+    copayerIndex: 2147483647,
+  },
   createdOn: 1422904188,
   id: '123',
   name: '123 wallet',
@@ -52,9 +44,11 @@ var testWallet = {
     'xpub661MyMwAqRbcFXUfkjfSaRwxJbAPpzNUvTiNFjgZwDJ8sZuhyodkP24L4LvsrgThYAAwKkVVSSmL7Ts7o9EHEHPB3EE89roAra7njoSeiMd'
   ],
   copayers: [{
-    receiveAddressIndex: 0,
-    changeAddressIndex: 0,
-    copayerIndex: 0,
+    addressManager: {
+      receiveAddressIndex: 0,
+      changeAddressIndex: 0,
+      copayerIndex: 0,
+    },
     createdOn: 1422904189,
     id: '1',
     name: 'copayer 1',
@@ -63,9 +57,11 @@ var testWallet = {
     version: '1.0.0',
     signingPubKey: '03814ac7decf64321a3c6967bfb746112fdb5b583531cd512cc3787eaf578947dc'
   }, {
-    receiveAddressIndex: 0,
-    changeAddressIndex: 0,
-    copayerIndex: 1,
+    addressManager: {
+      receiveAddressIndex: 0,
+      changeAddressIndex: 0,
+      copayerIndex: 1,
+    },
     createdOn: 1422904189,
     id: '2',
     name: 'copayer 2',
@@ -74,9 +70,11 @@ var testWallet = {
     version: '1.0.0',
     signingPubKey: '03fc086d2bd8b6507b1909b24c198c946e68775d745492ea4ca70adfce7be92a60'
   }, {
-    receiveAddressIndex: 0,
-    changeAddressIndex: 0,
-    copayerIndex: 2,
+    addressManager: {
+      receiveAddressIndex: 0,
+      changeAddressIndex: 0,
+      copayerIndex: 2,
+    },
     createdOn: 1422904189,
     id: '3',
     name: 'copayer 3',