Shareholders’ agreement should account for divorce
When it comes to protecting a business from a triggering event such as a marital breakdown, it’s worth reviewing the different approaches when drafting a shareholders’ agreement, says Toronto corporate lawyer Anton Katz.
If a shareholder gets divorced, their ex-spouse may make a claim for their shares, says Katz, principal of Anton M. Katz Barrister & Solicitor.
“In the event of a marriage breakdown, a couple enters into an equalization of their net family property (NFP) under Ontario’s Family Law Act,” he tells AdvocateDaily.com. “Essentially, when two people get married, each spouse becomes automatically entitled to an equal share of the profits of that marriage.”
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