The court recognized that the accounting of a company’s property does not always reflect market reality. Therefore, the value is determined not by accounting valuation, but by market valuation. And this opens up space for Distribution of authorized expert evaluation, court debates, and, of course, legal battles.
A similar approach has long been used in common law countries
such as the UK and the US. In the event of a divorce, the share in the business is assessed at market value. The court takes into account all assets, liabilities and even the company’s development prospects.
However, there are interesting differences. In the US, for phone number lead example, a court may consider not only the business assets but also the future income potential of the company. In Sweden, where divorce is almost always an equal division, the party Distribution of authorized who owns a share can keep it but is required to pay the other party compensation calculated according to market standards.
Nuances of the practice of dividing authorized capital upon divorce:
The implementation of the new concept in our country has its pitfalls. Here are a few issues that should already be discussed in legal circles:
How to determine the market value? The conclusions of experts become key evidence. But will both parties agree with the assessment? Usually, each hires “their” expert, and the court has to choose the part of the scpc, it is planned to establish between two, sometimes radically different, figures.
What to do with non-payments? If the company does not have liquid assets to pay the share, can it demand the transfer of other property?
For example shares real estate or even part of the company’s profits?
What rights does the other spouse receive? From now on, the party that received the share may turn out to be not only a formal co-owner, but also a member of the partnership. And this opens up a new layer of aqb directory conflicts, especially if the parties divorced on unfriendly terms.
What does this change for the couple?
This court decision is a new opportunity for those seeking justice. But it is also a challenge for businesses. Entrepreneurs should think about safeguards: prenuptial agreements, additional agreements, or other mechanisms to protect the business in the event of a divorce.