The Study About Divorce Segmentation Of LLC Matrimonial Equity

Matrimonial equity means the stock right which acquired due to one or both spouses’ investments, trades, inheritance, recipient and other reasons, or via communal estate to investment limited liability company during the period of existing marriage. LLC matrimonial divorce split equity which requires that the total equity transfer occurs between spouses or between a spouse and a third party shareholders must be sentenced by mutual agreement or the people’s court, so that both spouses can transfer the proceeds of the equity split. In this paper, the discussions mainly focus on the aspects of the concept of matrimonial equity of Limited Liability Company(LLC) and related theories, split ways under different situations and practice segmentation procedures. Then, according to the analysis of existing cases and the extraterritorial provisions of a comparative study with other scholars view, we analyzed the problems about divorce split of LLC matrimonial equity and gave some relevant improving recommendations.This paper is mainly divided into five parts:Section one: introduction. Current section clarified the background, significance, research actuality and methods over the divorce segmentation of LLC matrimonial equity.Section two, the basic theory on divorce segmentation of LLC matrimonial equity. Above all, the features of matrimonial equity were introduced according to deep analysis of the concept of LLC matrimonial equity. Here we define the meaning of jointly owned property system, and divide the system into two parts. One is the agreement jointly owned property system and the other is statutory matrimonial property system. Jointly owned matrimonial property system of equity research provides a theoretical basis. Besides, legislative provisions relating to matrimonial property system of judicial practice of matrimonial equity provides a legal basis. The principle of LLC matrimonial divorce split equity are listed as follows: the principle of equality of both spouses, compensation and care for their children and the woman’s principle interests, auction principle, favorable production and convenient life principle, the principle of the whole division, holding capital constant principles.Section three, the manners of LLC matrimonial divorce split equity in China. In this part, we pointed out that the LLC matrimonial divorce split equity can be divided into "husband and wife’s company", "the company set up by one person"," spouse shareholdings, and others et.al four cases when both spouses jointly with others, combining with legal provisions and practice in referee program of LLC matrimonial divorce split equity.Section four, the problems exist in divorce segmentation of LLC matrimonial equity. In this part, we proposed and analysis the problems of divorce segmentation of LLC matrimonial equity based on the analysis of the basic theory and the current situation mentioned above, combined with related cases. The arguments are mainly regard with the treatments of several problems, such as equity segmentation and defining the scope of the standard is not clear; matrimonial equity valuation system is imperfect; property registration system deficiencies lead to non-shareholder spouse of proof is difficult for property preservation system lacks flexibility; while the preemption was exhausted, other shareholders don’t have other relief rights; how to deal with divorce segmentation of LLC matrimonial equity which is involved behalf of the shareholders agreement is not explicitly.For section five, the specific assumptions of the divorce segmentation system on matrimonial equity of LLC. Combining with the current law, extraterritorial provisions and academic theory, the range of the divorce segmentation of LLC matrimonial equity is determined as: the equity investments or joint property which are agreed by both sides of couple to be joint estate, the equity investments acquired by inheritance or gift by others during the period of marriage, marriage party equity investment of personal property acquired before marriage the couple shares with personal property jointly acquired. It is pointed out that the standard of matrimonial divorce split equities are matrimonial shares acquired time and matrimonial equity value approach. Establish matrimonial equity value assessment system. When determining the matrimonial equity valuation, taking into the economic compensation with couples’ contribution to the company and the family. Depending on the assessment of the object and purpose as well as data collection and other conditions, choose income approach to evaluate the value of stock rights. In the way of dividing the stock rights owned by couples, clear and definite the registration system of couples’ property, improve the rule of evidence, and pay attention to use property preservation in flexibility. Establish the appointed purchase rights system to protect the interests of company and the third party, and uses agreed by the company, perform by shareholders implement the appointed purchase rights. When the couples split divorce involving an agreement of on behalf of hold the stock rights, the trust-based behalf of the shareholders agreement with the partnership agreement based behalf of the shareholders in terms of both spouses in a joint analysis as the actual investor commissioned as significant shareholders holding at matrimonial how to split the equity spouse as anonymous shareholders, and signed on behalf of the shareholders agreement when its rights protection and other issues on how the other as the significant shareholders how to divide the matrimonial equity, non-shareholder spouse who wants to be added as the shareholder of the company. It is proposed that the generation of stake in the joint equity division of divorce agreement when the shareholders spouse as a dormant shareholders should pay attention to follow strict procedures generation shareholding agreement, establish the consciousness of advance awareness and afterwards relief safeguard their legitimate rights and interests such as perfecting suggestion.