High Tech Divorce | The high standard of living of high-tech workers may be detrimental in the event of a divorce – what is the role of the husband or wife in a START UP which is the result of their spouse’s development?
High-tech-style divorce
Many high-tech people have until recently enjoyed generous salaries and a high standard of living. But it is precisely these conditions that may be detrimental in the event of a divorce. High-tech people, whose professional future is unclear these days, and who are currently in divorce proceedings, may soon find themselves entangled in legal proceedings.
The legal issues that arise in the divorce cases of high-tech people are particularly complicated
How to divide the options provided in the workplace? What is the share of the husband or wife in the START UP which is the result of their partner’s development? Is it possible to share the reputation of one of the spouses, and how should they be assessed against the background of the developing crisis in the high-tech market? Here are some examples of high-tech divorce proceedings, and possible ways to get out of the tangle.
The number of divorces in Israel is rising year by year and now stands at over 30 percent of all married couples. The rabbinical courts and courts, which kneel under the burden of proceedings, often encounter long and exhausting divorce disputes, which often last for many years due to disagreements that often revolve around how the property is divided and the amount of child support and wife alimony. This problem is exacerbated especially when it comes to couples with unrealized property and wealth, such as high-tech workers.
The problems in the division of property and assets
Many high-tech divorcees face a real problem when trying to estimate their unreal assets like the value of a START UP developed by one of the spouses. START UP, which was developed by the husband before he met his wife, for example, may not have been valued at a large sum of money at the time of the wedding, but could have been sold after the wedding for hundreds of millions of shekels.
The issue that arises in such a situation is whether a woman deserves half of the amount or less?
The court operates on the principle that what belonged to the husband or wife before the marriage belongs only to them and should not be included in the property division agreement but what was achieved when the couple lived together, should be divided equally.
But how can a START UP be distributed before it is realized, during its sale, or after its sale?
Although in the case of a short marriage there is a chance that the court will decide not to make a division of START UP due to the complexity involved, but in any case, any decision may cause one or more parties to feel victimized. According to similar rulings given in the past, the court will appoint an expert on its behalf who will calculate the share of the relationship from the time the START UP exists. This part will be considered as the joint part of the couple in the START UP and it will be shared equally between the parties. That is, if the START UP exists ten years until it is sold, and the couple began their life together about five years ago, then only half of the START UP value is expected to be divided between the parties. Additional complexities can be attached to the subject. It is therefore advisable to contact lawyers who specialize in such divorces, and analyze the situation properly before it goes to court.
The price of professional reputation
High-tech reputable people are not always aware of the fact that in the event of a divorce their reputation will be considered the property of the whole family. This means that when the property and finances are divided between the spouses, the reputation is calculated according to their value in the market. The problem is exacerbated in the face of the developing crisis in the markets, because reputations that until recently were considered highly valuable are now entering a vague labor market, and possibly even for a long period of unemployment. A couple who made a division of property and considered the reputation of the husband or wife as having a certain value, may now face a new claim for recalculation of the reputation, after the crash of the technology market.
Challenges in Dividing Personal and Business Reputation in High-Tech Divorce
There is a lot of difficulty in distributing reputation, especially among high-tech people. Since this industry is relatively young, the updates in it are on a weekly basis, and the crises raise and lower the value of high-tech people in the various industries. It is therefore difficult to calculate the reputation. In such a case there is a separation between the reputation of a company owned by one of the spouses, and the personal reputation of the spouse. It must be examined whether the company’s reputation stands on its own, and if so they must be divided separately.
On the issue of personal reputation, with the help of appropriate legal advice, it will be possible to negotiate the amount of the part due to the spouse which has no personal reputation. In any case, if the parties do not reach an agreement, the court will usually be forced to appoint an expert on its behalf who will assess the value of the reputation which was obtained since the date of marriage until the date of divorce in order to divide them equally between the parties.
