1. The Client’s Crisis

The client had married after a 10-year relationship and had been in a 15-year marriage. During the marriage, the couple could not overcome their conflicts and proceeded with a divorce lawsuit, and the biggest issue was the division of property. Most of the spouse’s assets were in the form of unlisted company shares, and there were almost no liquid assets such as real estate or cash. Unlike listed shares, it is difficult to determine the cash value of unlisted shares, and there was concern that the spouse might dispose of the shares and hide assets, making the situation extremely frustrating and urgent for the client.

2. Key Issues

There were three major difficulties in this case. First, because the spouse’s assets were concentrated in unlisted shares, it was difficult to accurately determine their cash value in the first place. Unlike listed shares on markets such as KOSDAQ, there is no established market price. Second, there was a real risk that the spouse might dispose of the shares to a third party or transfer the title during the litigation process and conceal assets. Third, even after converting the value of the unlisted shares, the key issue was how much of the client’s contribution to the accumulation of assets would be recognized by the court.

3. The Strategy

The divorce team led by Managing Attorney Yoon Ji-sang (a former presiding judge of the Family Court) immediately filed for a provisional seizure of the unlisted shares at the same time the complaint was submitted. Provisional seizure is a system that seizes assets in advance for the purpose of preserving future enforcement, and the top priority was to prevent the spouse from disposing of the shares.

Based on his experience handling numerous provisional seizure and property division cases involving unlisted shares during his time as a presiding judge of the Family Court, Managing Attorney Yoon Ji-sang identified signs that the spouse was attempting to conceal or dispose of assets through the shares and blocked them in advance. After securing the safety of the assets through provisional seizure, he converted the cash value of the unlisted shares into monetary terms, included it in the asset inventory, and actively argued and substantiated the client’s contribution with legal grounds.

4. Result and Recovery

The court recognized the client’s contribution to the accumulation of assets and acknowledged a 40% contribution rate for the identified assets worth 2.7 billion won. As a result, the client was able to receive 1.08 billion won in property division. This was the outcome of promptly preserving assets that were difficult to identify and value, such as unlisted shares, accurately calculating their worth, and having the contribution recognized as well.

Responsible Attorney: Yoon Ji-sang, Managing Attorney (former presiding judge of the Family Court, extensive experience in family and inheritance property division cases)

To protect confidentiality, this case has been partially de-identified within a range that does not compromise the substance of the matter.