Russian lawyer for foreign nationals

We work across all Russia
Law Firm

What happens to business after divorce in Russia?

The divorce division of the business can have a significant impact on how it works. We have identified the most common risks:
1) undermining the reputation and the emergence of conflicts between business co-owners;
2) controversial issues with partners and contractors;
3) depreciation of assets.
4) one of the spouses can re-register the business, sell or donate it, without a division agreement. To protect your rights, you should apply to the court with a petition for the seizure of property and the imposition of a ban on the sale of shares and assets. If the transaction has already been completed, you can declare its recognition as imaginary or invalid. But the burden of proof will lie with the spouse who made the claim.

what is the difference between common and personal property?

Purchases, money and business are joint property if it was acquired during the marriage and will be divided in half upon divorce. The business will not be recognized as the property of the spouse, even if it is fully registered in it, and the second spouse did not take part in it and does not go anywhere according to the documents.

Business division in case of divorce will not be carried out if it was created before marriage.
For example, a share in an LLC will not be common if the spouse acquired it before the legal marriage. The property of an individual entrepreneur acquired before marriage will be personal. If part of the property for the business was created before marriage, and in the course of its conduct something was bought in addition, then this part will be recognized as common.
Sometimes a business is recognized as created in a barge upon divorce, but not shared. In case of acceptance of an inheritance or gift. If the spouse's asset related to his intellectual property is its sole author, then there will also be no division.

There are two options for the property of the spouses:
common - joint property;
contractual - we are talking about a marriage contract (without it, all property is divided equally)
This also applies to the division of business in case of divorce.

In Russia, marriage contracts are rarely concluded. The division of property can be carried out between spouses and during marriage at the request of one of them. If, upon divorce, the husband and wife cannot reach an agreement, then the dispute is resolved only in court.
A marriage contract can be concluded both during marriage and before its conclusion. All that is required to comply is a written form and a notarial certification.

How to divide a business in case of divorce if the spouses have a marriage contract?

1 establish a separate ownership regime for certain types of property;
2 determine the property that is transferred to each of the spouses upon divorce;
3 other other provisions concerning property relations.
The terms of the contract may be limited by specific terms or by non-occurrence of specific conditions. At the legislative level, there are many options for protecting a business in case of divorce.

Everything that is created and acquired in marriage is considered joint property. In terms of business, this also applies to money in the current account of a spouse who has the status of an individual entrepreneur.

If the spouses cannot agree peacefully and decide how to divide the business in case of divorce, they will have to go to court.

What steps will need to be taken:
  • determine the subject of the dispute - things, movable and immovable property, deposits, securities, etc.;
  • collection of documents indicating ownership;
  • preparation of the justification for the stated claims;
  • make a claim in court.

How to determine jurisdiction:
  • dispute does not reach 50,000 rubles - we go to the magistrate's court;
  • court at the place of residence of the defendant, if the amount of the dispute is higher than the specified one;
  • district court at the location of the property, if the dispute is in relation to buildings, a plot of land.

Don't forget about the documents. Their list depends on the circumstances of the case. The exact package of papers for the court is collected individually.

The business of an individual entrepreneur in case of divorce is divided in almost the same way as in the general procedure for dividing common property.

The law allows not to separate items purchased in marriage, but used for entrepreneurial activities, if their division may interfere with the work of the entrepreneur.

The court uses a mechanism of monetary compensation of half of the cost in favor of the second spouse. Entrepreneurial activity can be expressed not only in profits, but also in losses. According to the law, the debts will also be divided between the spouses. Therefore, before starting the division of an individual entrepreneur's business in a divorce, you need to be aware of the consequences.

If you successfully invest in the authorized capital of an LLC, you can get a good income for the family budget. If the owner of the share is one of the spouses, then this part will also be divided in equal parts. Spouses with equal shares in LLC can agree:
  • continue to do business together;
  • buy out the partner's share, sell it to the ex-spouse;
  • sell the business and divide the money equally.

The decisions of the courts may be different depending on how the shares in the business are divided in case of divorce, if the other co-owners of the company do not want to change the composition of the participants. The solution may be to pay cash compensation for the company's net assets.

Business in divorce is a normal practice, as it is jointly acquired property. The separation procedure is fraught with many legal variations. For example, a family business may not be able to divide up without an assessment. The cost of each spouse's share must be determined. The appraisal is carried out by a licensed firm. This further complicates the process of dividing the business.

If the spouses cannot agree on the part of the separation or do not know how best to carry out the procedure, a dispute arises that goes into court proceedings. It is difficult to solve such issues on your own. Entrust the resolution of the issue to our practicing lawyers.
Tel: +7 909 961-19-09
Visit us: Moscow, Zubovskiy bulvar, building 4, room 308
We are in social networks
Subscribe to our groups in social networks
More useful articles
Or find out more about our services