Natalia Demina has discussed with RBC Pro corporate conflicts caused by divorces

Natalia Demina Senior Associate

Natalia Demina, Head of Private Wealth Practice, spoke with RBC Pro regarding divorce becoming the subject of not only a matrimonial dispute, but also a corporate one.

According Natalia, the domestic business is often about personalities and parties to a joint venture may not want to deal with a business partner’s former spouse, who “in the event of the division of property in divorce may acquire half of the former spouse’s entire business that was created during the marriage”.

On the other hand, there are cases when a business partner uses family troubles of other partners for his/her own purposes, for example by trying to strengthen corporate control over the company. “We are talking about a situation where, after the division of property, shares are distributed as follows: 50% – the first participant, 25% – the second participant after the division of property, 25% – to the former spouse of the second participant. Partners with equal shares, between whom there is a conflict, guarantee that no decision will be made. And in such a situation, it may be more profitable for a partner to agree to transfer a share than to pay its actual value. In any case, a business unprepared for divorce and inheritance is almost always the start of a corporate war for control of “weakened” assets, which lowers its value”, Natalia emphasised.

To read the article in full (in Russian) please see the RBC Pro website >>>