“If you want greater certainty that a shareholder`s ex-spouse is not making a claim, the couple should enter into a house or marriage contract, with each party getting independent legal advice,” Katz said. A judge may therefore order the transfer of shares from one party to another. If one party is a shareholder, it is not common for the court to order a transfer of shares to the other spouse because the court will attempt to end the relationship between the parties rather than extend their relationship beyond the divorce. Nevertheless, such contracts have been made. In versteegh`s most recent case, for example, the judge granted the wife participation in the husband`s affairs, which was upheld on appeal. Katz says that other shareholders generally want to do business with the person they know, unlike their ex-spouse, who may be a foreigner and does not have the knowledge and know-how to be part of the company. To protect itself when a spouse wishes to equalize shares under the Family Act, a company may have a shareholder contract that contains certain provisions. This may include the requirement for shareholder spouses to waive all effective stock claims and the right to information that respects the company, as well as independent legal advice. However, the shareholders` pact should more often provide that a shareholder`s shares are sold, repaid or transferred to another shareholder in the event of a claim or proceeding brought by that shareholder under the Family Act.
This ensures that the spouse receives the value of the shares in the form of monetary policy, but not the shares themselves. In other words, the spouse receives his or her equivalent and the other shareholders of the company are not obliged to be in business with their ex-spouse. A shareholder pact can provide many solutions and protections in case of adultery. It is important to note, however, that it is not possible to avoid the compensation provisions of a shareholders` pact; it is reserved only for the area of a marriage contract. In other words, a shareholder pact may indicate the value of the shares to be given to the spouse instead of the shares themselves, but only a marriage contract (sometimes called a marriage contract) can lead the spouse to conclude his rights on the value of the shares. Many shareholders fear that marital conflicts will destabilize a company`s holdings. How can a shareholder pact be written to ensure that a spouse of a shareholder does not receive shares under a family compensation scheme (FLA)? In the event of a divorce, other shareholders may acquire the shares as a preventive measure. However, he says that shareholders may not be able or willing to buy the shares, and the outgoing shareholder might not want to sell their shares in the company.
If you`re already married, it may not be too late. You might try to secure a post-marital agreement with your spouse in order to achieve the same goal. It is often more difficult for the financially weaker spouse to argue that they were under pressure to sign a post-marriage agreement, and that they should not be kept on their terms, compared to a pre-marital contract signed before a marriage.