diff --git a/app/models/deliverable.rb b/app/models/deliverable.rb
index 88a4cc0..ac16f64 100644
--- a/app/models/deliverable.rb
+++ b/app/models/deliverable.rb
@@ -9,7 +9,7 @@ class Deliverable < ActiveRecord::Base
   has_many :labor_budgets
   has_many :overhead_budgets
   has_many :fixed_budgets
-  has_many :issues
+  has_many :issues, :dependent => :nullify
 
   accepts_nested_attributes_for :labor_budgets
   accepts_nested_attributes_for :overhead_budgets
diff --git a/test/integration/deliverables_delete_test.rb b/test/integration/deliverables_delete_test.rb
index a19669d..3f8a943 100644
--- a/test/integration/deliverables_delete_test.rb
+++ b/test/integration/deliverables_delete_test.rb
@@ -44,4 +44,27 @@ class DeliverablesDeleteTest < ActionController::IntegrationTest
 
     assert_nil Deliverable.find_by_id(@deliverable.id), "Deliverable not deleted"
   end
+
+  should "unassign issues from the deliverable when deleting" do
+    issues = [
+              Issue.generate_for_project!(@project, :deliverable => @deliverable),
+              Issue.generate_for_project!(@project, :deliverable => @deliverable),
+              Issue.generate_for_project!(@project, :deliverable => @deliverable)
+             ]
+    assert_equal 3, @deliverable.issues.count
+
+    @project.reload
+    
+    visit_contract_page(@contract)
+
+    click_link_within "#deliverable_details_#{@deliverable.id}", 'Delete'
+    assert_response :success
+    assert_template 'contracts/show'
+
+    assert_nil Deliverable.find_by_id(@deliverable.id), "Deliverable not deleted"
+    assert_equal 0, @deliverable.issues.count
+    assert issues.all? {|issue|
+      issue.reload && issue.deliverable_id.nil?
+    }, "Issues' deliverable was not removed #{issues.collect(&:deliverable_id).join(', ')}"
+  end
 end