Division of share of authorized capital between spouses

Modern business is generally built in such a way that in most cases it is created by spouses who have shares in its authorized capital. This is explained by the fact that doing things together is completely more efficient and safer than doing it alone.

However, life always makes its adjustments, and sooner or later, spouses may eventually intend to separate and divide joint property among themselves, including a share in the state capital of a legal entity. This shows the relevance of the topic as a whole.

In this article, we will consider how to divide the share of the authorized capital between spouses in accordance with current legislation.

What is the authorized capital of a legal entity?

The authorized capital of a legal entity should be understood as the monetary value of the contributions of the participants (founders) of the enterprise or organization.

Evaluating this contribution in relation to the total value of the authorized capital of the legal entity determines the share of each of the founders of the organization, as well as his right to vote at the general meeting of the enterprise.

It is determined at the creation of a legal entity once and in the future, even if contributions to the enterprise are reassessed, the share is not subject to such a process, as it is fixed in the charter before that.

How to divide the share in the authorized capital between former spouses?

Unfortunately, today the SCU does not provide an answer to this question in any way, since it does not contain legislative norms regarding such distribution between spouses.

It contains only general norms that persons who are married to each other have the right to share the property they acquired jointly, and their shares are equal.

Instead, the judicial practice of the Supreme Court acts as a source of law in solving such an issue.

Yes, for example in the decision of the Supreme Administrative Court of the Supreme Court dated March 16, 2023, in case No. 911/2780/20, the court stated the following that the share in the authorized capital of the enterprise, which was acquired (acquired) at the expense of joint funds of the spouses, is an object of joint property of the spouses.

However, the owner of the property that was included in the authorized capital for the creation of this enterprise is the legal entity itself , and in this case such property is not divided between the spouses.

That is, if the common property of the spouses was included in the authorized capital, then the other member has the right to half of its value. In addition, one of the spouses is entitled to half of the amount of the part of the authorized capital that was contributed by the other spouse or paid dividends.

Therefore, the corporate rights of a legal entity are not shared between spouses, except for the shares of enterprises or organizations.

This was one of the examples of the decision of the Supreme Court, which clarified the legal nuances regarding the division of the share of the authorized capital between spouses. In practice, they are much more.

And therefore, in order to correctly choose the mechanism for protecting your share in the authorized capital during a divorce, you need to contact experienced lawyers - the "Prikhodko and Partners " law firm.

Despite the complexity of issues related to the distribution of authorized capital between ex-spouses, our team has in -depth knowledge of this topic , which allows us to thoroughly understand each situation in accordance with the circumstances and solve it professionally. Get in touch!