"Divorce does not analyze equity the way founders do. It does not stop at formation documents. It looks at growth. It examines effort. It evaluates the value created during the marriage."
"Even when shares cannot be transferred, the value attached to those shares may still be subject to division or offset. A founder may retain full control of the company and still face significant financial obligations tied to its appreciation."
"The difference between ownership and value is crucial. In business, ownership feels definitive, but in divorce, the more relevant question is often economic value."
Divorce affects business value by examining growth and effort during the marriage, not just ownership structures. Founders often mistakenly believe pre-marriage ownership protects them. In divorce, the focus shifts from ownership to economic value, which can lead to unexpected financial obligations. Even if shares are not transferable, their value may still be divided. This perspective change is crucial for founders, as it reframes the conversation from control to valuation, highlighting the importance of understanding how value evolved during the marriage.
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