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A divorce does not have to be the end of your business, but your company often plays a role in the settlement. How it turns out depends heavily on your matrimonial property regime: are you married in community of property or under a prenuptial agreement? Making good agreements in advance protects your business.
Your business in the divorce
In the event of a divorce, assets must be divided or settled. If you own your own business, its value often falls under this. The question is whether your partner shares in the business or the increase in value, and if so, for how much. This directly affects the continuity of your business.
The regime determines a lot
If you are married under a (limited) community of property regime, the business or its value often falls (partly) within the community and must be divided. The situation is different under a prenuptial agreement: depending on what you agreed upon, the business remains outside the division or a settlement clause applies. Therefore, read your prenuptial agreement carefully.
Valuation and buyout
It often revolves around the value of the company on the valuation date. This valuation is complex and sensitive: an overvaluation can force you to buy out your partner with money the company does not have. An independent, well-substantiated valuation and clear agreements are crucial.
Protect your business in advance
Prevention is better than cure: with sound prenuptial agreements, and in the case of multiple shareholders, a shareholders' agreement (with, for example, a blocking or offer clause), you protect the company against the consequences of a divorce. Preferably, arrange this before problems arise.
Frequently Asked Questions
Should I let my partner have a share in my business?
That depends on your matrimonial property regime. In community of property, often (partially) yes; under a prenuptial agreement, it depends on what you agreed.
How is the company valued?
Based on a valuation on the reference date, often by an independent expert. That valuation is sensitive and decisive for any potential buyout.
How do I protect my business against a divorce?
With good prenuptial agreements and, in the case of multiple shareholders, a shareholders' agreement. Arrange this in advance.
Protect your business?
Our legal experts advise on the consequences of a divorce for your business and draft a shareholders' agreement . View our corporate lawteam or schedule a free consultation.
