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Executives · Sub-expertise

Divorce of the business owner.

A divorce is one of the major risks for a business owner: valuation of the shares, division of assets, compensatory allowance, governance. Poorly prepared proceedings can bring down the business. We assist executives in securing the business during and after the proceedings, in connection with a family-law lawyer.

→ What we cover

Our scope of intervention.

Asset review

Analysis of the matrimonial regime, the common and separate assets, the valuation of the business and the potential consequences of a division.

Valuation of the business

Adversarial valuation of the shares, choice of methods (DCF, multiples, net asset value), management of any court-ordered expert appraisal.

Division and compensation

Division strategy: attribution of the shares to the executive with compensation of the spouse, financing arrangements, articulation with taxation.

Compensatory allowance

Calibration of the compensatory allowance (capital, annuity, mixed), articulation with the valuation of the business and the executive's future income.

Securing governance

Articulation with the articles of association and the shareholders' agreement (approval, pre-emption clauses) to prevent the spouse from entering the share capital or influencing governance.

Asset anticipation

Upstream protective measures: change of matrimonial regime, structuring via a holding company, dismemberment of ownership, shareholders' agreement.

→ Our approach

A proven methodology.

01

Review & strategy

Analysis of the matrimonial and asset situation, identification of the risks to the business, definition of the defence strategy.

02

Preparation

Building the economic and financial file, preliminary valuation, preparation of the defence arguments.

03

Proceedings

Support during the proceedings: negotiation of the division, management of any expert appraisal, defence before the judge.

04

Implementation & post-divorce

Execution of the agreement (transfer of assets, payment of the compensatory allowance), asset reorganisation post-divorce.

→ Who we help

Typical engagements.

Divorce under a community regime

Defence of an executive married under the community regime: valuation of the business, negotiation of the attribution of the shares, calibration of the balancing payment to the spouse.

Valuation dispute

Representation of an executive facing a valuation challenged by the spouse: adversarial appraisal, demonstration of the specific features of the business, negotiation of a balanced agreement.

Compensatory allowance in capital

Negotiation of a compensatory allowance in capital rather than as an annuity, financed by the sale of other assets or by recapitalisation.

Anticipation through a change of regime

Advice to an executive wishing to anticipate the risks through a change to separation of property or participation in acquisitions, with the couple's validation and organisation of the transfer.

→ Q&A

Frequently asked questions.

It depends on the matrimonial regime. Under the statutory community regime, a business created during the marriage enters the common pool and its value is shared. Under separation of property, the business remains separate, but the spouse may assert contributions (unpaid work). Under participation in acquisitions, a possible compensatory claim.

Several methods: DCF (future flows), sector multiples, revalued net assets, transaction comparables. An adversarial valuation is often negotiated, or settled by a court-appointed expert. The result can vary significantly depending on the method used.

An allowance paid to the spouse whose situation is disadvantaged by the divorce, to compensate for the disparity in living conditions. It takes the form of capital (lump sum or in instalments) or an exceptional annuity. Its amount depends on many criteria (duration of the marriage, assets, income, age).

Several levers: a suitable matrimonial regime arranged upstream, statutory clauses (approval, pre-emption) requiring the buy-back of the shares in the event of division, an asset strategy combining preferential allocation to the executive and compensation of the spouse in other assets.

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