The court has discussed quite a few times the division and separation of property between divorced spouses. These matters make headlines especially when it comes to assets worth millions. One of the parties wants to leave, but each wants to win as much money as possible from the remaining “loot”. But what happens when a couple divorces and the woman claims a percentage of the company he owns?
Such a story recently came to court. A couple divorced in 2007 after 18 years and the woman demanded a percentage she deserved from the company. The divorce agreement specifically stated that if no shares are issued to the public within the next 3 years, the husband will be able to purchase the shares according to their value, and if not – she will be able to sell them.
7 years after the divorce, an expert was indeed appointed by the court. According to the provisions of the Financial Relations Law, the husband was supposed to pay 15% of the company, something like NIS 700,000. The problem was that the value of the company rose to NIS 14.7 million and the owner, who refused to redeem the shares for a relatively small amount, would later find out that it would now cost him much more. The reason for this is that the value of the company reached NIS 80 million (that is, 15% is worth NIS 12 million).
3 years ago, the lawsuit reached the court again, which determined that the husband could purchase the shares for the value in 2014, that is, at the time of the judgment. In fact, he had to pay her 12 million shekels, or he would allow her to sell them. The husband did not pay, he tried to sell them in every way but was unsuccessful.
What did the court do? He forced the husband to purchase the shares, even though the agreement allows him otherwise. He claimed that the minority shareholder in the company, namely the woman, is a loser. After 16 years of struggles since the divorce, the husband has yet to pay the money. He claimed that the value of the company decreased, but the court did not answer him – he was forced to pay 12 million shekels, not including interest from that date in 2015.
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