Just as with ownership of any significant asset, being the owner of a sports team comes with complex legal concerns....
Just as with ownership of any significant asset, being the owner of a sports team comes with complex legal concerns. When divorce affects your ownership of a high-value sporting team, the impact will depend on provincial family laws, when you acquired the team, and whether or not you have a pre- or post-nuptial agreement.
The lawyers at The Riley Divorce & Family Law Firm have the answers to tough questions like this if you are beginning divorce proceedings. Learn more about divorce and ownership of a sporting team with our skilled team of lawyers.
In Canada, assets like a sports team that are acquired during your marriage are considered family property, which is subject to division per the standard of equalization. To determine the value of your sporting team, it must be professionally appraised by a qualified business valuator. That amount would be used to calculate your and your spouse’s net family property and determine the payout to your non-owning spouse.
If the sports team was acquired prior to the marriage, you may be able to maintain it as separate property. However, the appreciation of value in the team amassed over the course of your marriage could still be subject to equalization.
There are three primary outcomes for sporting team ownership after a divorce, with the most common being a buyout of your spouse’s share of the club’s value. You could achieve this with a few legal options, including:
You may also jointly choose to divide ownership, although this method is less common for high-value sporting teams, as it could disrupt operations. The final option is to exercise your prenuptial or postnuptial agreement. These marital contracts are valuable to protect your assets, prevent ownership squabbles, and retain operations during and after divorce proceedings.
A marriage contract is the best way to protect your ownership of a high-value sporting team from the breakup of your marriage. Beyond a pre- or post-nuptial agreement, there may be additional legal options that safeguard your assets.
A partnership agreement could be structured to prevent an ex-spouse from acquiring a stake in the business, while a buy-sell contract would force them to sell their interests back to the other owners or partners. In some cases, prior ownership matters, and the team could be excluded. However, you may still have to share the increased value of the team since you said your vows.
The Riley Divorce & Family Law Firm understands that when a divorce affects ownership of a high-value sporting team, there is a lot at stake. Our skilled lawyers have years of experience managing high-net-value divorce issues just like yours, and could help you navigate this process.
Our client-focused approach means we are available 24 hours a day to answer your key questions. So, let us help you protect your beloved sporting team, and reach out to our Ontario-based offices now.
The Riley Divorce & Family Law Firm
