What the service includes
Dividing property on divorce becomes complex when the assets include a business: a shareholding in a company, an investment portfolio, real estate abroad. The formal regime of joint ownership does not always reflect each spouse’s actual contribution or the risks to the company’s operations.
We protect the client’s interests on division by challenging or defending a prenuptial agreement, proving that particular assets are personal property, and structuring the division so that the business keeps trading rather than being frozen for the duration of the dispute.
Where the assets include a stake in an operating company, we generally insist on an alternative to direct division of shareholdings: compensation to the other spouse in cash or other liquid property following an independent valuation of the business, so that a co-owner does not acquire the right to influence corporate decisions. We also deal separately with situations where the business is held through a foreign holding structure and the spouse who took no part in management does not formally appear in any corporate document; here it is important to prove the actual contribution to acquiring the asset rather than rely only on register entries. Where possible, we move negotiations into a confidential format, such as mediation or a division agreement without court proceedings, so that the company’s financial information does not become public through the case file.
What the service includes:
Who it is for
The situations clients most often bring to us on this topic.
How we work
A fixed fee and a clear plan of action, agreed before work begins. The timeframes below are indicative and depend on the complexity of the case.
Inventory of assets
We build a full picture of the jointly acquired property, including assets abroad and business interests. Timeframe: 3-7 days.
Assessment of the legal regime
We determine which assets are subject to division and which are one spouse’s personal property. Timeframe: 1-2 weeks.
Negotiation or court
We seek a settlement agreement where that is in the client’s interests, or defend your position in court. Timeframe: by agreement, or 3-9 months in court.
Protecting the business
Where there is a trading business, we structure the division to minimise the risks to its continued operation. Timeframe: 1-2 months.
What you will need at the start
We confirm the exact list for your situation at the consultation. This is a guide so that you arrive at the first meeting prepared.
Key figures
Experience in this practice area specifically, not in practice as a whole.
Common mistakes
Overlooking the status of gifted property. Spouses assume that property received as a gift from one spouse’s parents during the marriage is automatically excluded from division, yet without a properly executed deed of gift a court may treat it as jointly acquired. Evidence of the source of the property should be prepared in advance, not in the course of court proceedings.
Personal contributions without proof. Savings from before the marriage or proceeds from selling personal property are put into buying or renovating the family home without documenting the source of the funds. Without such evidence, the court treats the whole value of the property as jointly acquired, and recovering a personal contribution becomes extremely difficult.
Delay in seeking interim measures. On noticing that a spouse is preparing to sell joint property or re-register it to relatives, people put off applying for interim measures until the main claim is filed. By the time the case is heard, the asset may already have been disposed of, or its value may have become the subject of a separate dispute.
What you get
An agreement without losing control of the business. The client keeps day-to-day management of the company, while the other spouse receives compensation in cash or other property.
An independent valuation of all assets. The client holds the valuers’ opinion, which can be used both in negotiations and in court.
Registered rights to assets in each country. The division of property is recorded in the registers of every jurisdiction where the spouses’ assets are located.
Corporate decisions protected from interference. The company keeps operating without interference from the former spouse in operational matters.
Related
Frequently asked questions
Is a business divided on divorce like any other property?+
As a general rule, yes, if the interest was acquired during the marriage, but there are protective mechanisms: a prenuptial agreement and a shareholders’ agreement with provisions for the divorce of a participant.
What if the prenuptial agreement was signed before the business was created?+
We examine the wording of the agreement: sometimes it extends to future assets, and sometimes it needs to be supplemented.
How are overseas assets treated on division?+
Russian law formally applies to the spouses’ joint property, but actually enforcing a decision against overseas assets requires a separate procedure in the relevant jurisdiction.
Can property be divided without going to court?+
Yes, by a notarised property division agreement. It is quicker and cheaper than court proceedings, provided the parties are able to agree.
Are loans and other debts of the spouses taken into account on division?+
Yes. Obligations incurred in the interests of the family are allocated in proportion to the shares in the property, so it is important to distinguish in advance between joint debts and one spouse’s personal obligations.
Is a spouse’s share reduced if they had no income of their own during the marriage?+
No. Lack of earnings does not in itself affect the size of the share: the law proceeds from equal shares regardless of income where one spouse ran the household or looked after the children, although in practice this often has to be additionally proved in court.