Principle of the division of the company after divorce
Division of the company after divorce in Poland
The situation that only one of the spouses has got shares in a company does not exclude the fact that the shares are part of the joint property of spouses. So, they are covered by the statutory joint property. In case of divorce and division of property they will be also subject to division, along with the other components of the property.
How to determine the value of the assets?
Partner, that awaits the division of property, should know the process by which the value of the assets shall be determined. According to one of the judgments of the Supreme Court, the value of the shares subject to distribution shall be determined according to their values from the time of the distribution (not the cessation of joint property). This may be important if the division of property takes place several years after the cessation of joint property.
Considering the above mentioned, one should remember that, despite the fact that the shares are the part of joint assest, only the spouse who acquired (or purchased) shares, can autonomously execute rights and obligations related to participation in the company. Nevertheless, in case of the division of assets, these shares will be divided between the ex-spouses. So, the ex-spouse who was not even a partner in the company will be granted shares in the company.
Division of the company after divorce in Poland – how to protect your business?
The question arises what business partners of a limited liability company in Poland, and ex-spouses, can do to not to allow such situation to happen. They need to include a provision in the Articles of Association. The provision would either limit or exclude the possibility of (ex)-spouses of business partners of the company to enter the company.
In that case, the Court, sharing the couple’s property will not be able to distribute the shares without taking the provion contained in the AoA into consideration. Consequently, the other spouse (who is not a partner) cannot successfully claim to be granted shares in whole or in part.