Three years separated across Frankfurt: equity and property deadlock resolved remotely
A Chinese couple separated for three years, one living in Frankfurt, held both company equity and a residential property in China, with a combined value in the region of RMB 10 million. The dispute had stalled entirely.
Background
A Chinese couple separated for three years, one living in Frankfurt, held both company equity and a residential property in China, with a combined value in the region of RMB 10 million. The dispute had stalled entirely.
The difficulty
Two asset classes were in dispute, the overseas party could not attend in person, and neither party trusted the other's valuation of the equity.
What was done
Preservation was obtained over both the property and the equity, so that neither could be dealt with during the proceedings. The remote authorisation route was put in place, and the equity was addressed through a value-based adjustment rather than a transfer of shares, which avoided the question of whether a share transfer could be given effect.
Outcome
The matter was concluded with the Frankfurt party participating remotely, the property and equity positions both resolved, and the outcome structured to avoid any need for enforcement abroad.
Why this pattern recurs
Where a company interest is involved, a value-based adjustment is usually more achievable than a transfer — both because a transfer may be restricted by the articles and because a value-based outcome can actually be completed.
If your situation looks similar
Send the facts in one message: where the marriage was registered, where each party lives now, where any children are, and where the assets are held. That is usually enough to say whether a China route exists, and there is no charge for that first review.
Figures and outcomes described here relate to a specific matter and do not indicate a repeatable result.
Points to take away
- Where a company interest is involved, a value-based adjustment is usually more achievable than a transfer — both because a transfer may be restricted by the articles and because a value-based outcome can actually be completed.
- The matter was concluded with the Frankfurt party participating remotely, the property and equity positions both resolved, and the
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