Hiding money in a business

[daver32]

I know someone who is going through a divorce. His ex owns a very successful business with her brother in law. After his divorce they came forward with some share holder agreement saying in the event of a divorce of either co owners, the other co owner has the right to buy out the other half of the company at 60% discounted from what the shares would be worth.

Now how does a contract like this that stand up in family law. I would expect that this has nothing to do with the value of the business at the time of their divorce and is just a matter between the two owners. What I would expect is that someone who is capable of evaluating the worth of a company determine what the business is worth and from that his ex's value in the business would be half since she owns half of the business regardless of their little scheme to ensure that his ex will now own none of the business.

Of course after all the divorce issue is settled. The co owner being family will sell her half back to her at the same discounted rate.

[wondering50]

I doubt that such a "contract" would have any validity.

Just because two parties sign a contract, they can't supercede the laws of the land.

[daver32]

Thanks. Yeah thats my thinking on that as well.