What happens to a private foundation in the event of a spouse’s divorce — and how can the risks be reduced?
RBC examined what disputes most often arise in divorce proceedings if the family has a private foundation structure. At the same time, even a notarized spousal consent to the contribution of jointly acquired property does not guarantee protection against claims.
RBC examined what disputes most often arise in divorce proceedings if the family has a private foundation structure. At the same time, even a notarized spousal consent to the contribution of jointly acquired property does not guarantee protection against claims.
Lyubov Krondeva, Head of the Family and Inheritance Planning Department at Alpine Group, explains:
“Under Russian law, the general principle is that consent may be challenged if it is proven that it was obtained through fraud, coercion, deception, or abuse of rights. Thus, a spouse who consented to the transfer of property into the foundation may later claim that they did not understand the consequences of losing the regime of joint ownership, or that their rights were violated because they were not granted beneficiary status in the foundation.”
For more on why a private foundation may complicate the division of property, see the RBC article
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