Protecting Business Shares Transfer

Summary

To transfer business shares to children while preventing spouses from gaining ownership, consider options like shareholders agreements, trusts, and prenuptial/postnuptial agreements. Postnuptial agreements, legally binding in Alberta, require voluntary participation and full financial disclosure. Consult independent legal advice for drafting and enforcing these agreements.

Full Conversation

We are business owners who would like to give shares of our company to our children, however we don’t want their spouses to have ownership. Is there a way that we can do this?
Yes, you can structure the transfer of shares to ensure your children's spouses do not gain ownership. Here are a few options:
- Shareholders' Agreement: Include provisions restricting the transfer of shares to spouses.
- Trusts: Place the shares in a trust with your children as beneficiaries.
- Prenuptial/Postnuptial Agreements: Your children could enter into agreements with their spouses waiving any claim to the shares.
Would you like more detailed information on any of these options?
Yes. Could you expound on the Postnuptial agreements? I believe this is the way we want to go.
Sure! Here is some information about postnuptial agreements:
- Definition: A postnuptial agreement is a legal contract entered into by spouses after they are married, outlining the division of assets in the event of a divorce or death.
- Purpose: It can protect specific assets, like business shares, from being claimed by a spouse.
- Enforceability: In Alberta, postnuptial agreements are legally binding if made voluntarily and with full financial disclosure.
Would you like to know more about how to draft and enforce a postnuptial agreement?
Yes please!
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To draft and enforce a postnuptial agreement in Alberta, you should consider the following:
- Consultation with Lawyers: Both parties should have independent legal advice.
- Full Disclosure: Include complete financial disclosure from both sides.
- Voluntary Agreement: Ensure the agreement is entered into voluntarily without any duress.
Would you like more detailed guidance on finding a lawyer who can assist you with drafting a postnuptial agreement?
No. Thank you for your help!
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It seems like you have a good understanding of the next steps. If you have any other questions in the future, feel free to reach out!