Tenerife Court Convicts Ex-Husband for Stripping Company Assets During Divorce

The Provincial Court of Santa Cruz de Tenerife has resolved a case of corporate mismanagement through a plea agreement, highlighting the serious risks that arise when business interests clash with a marital breakdown. The ruling resulted in suspended prison sentences for two individuals, serving as a reminder that administrators can face criminal charges if they use their position to strip a company of its assets to harm a business partner—in this case, an ex-spouse.

The dispute centered on a move to drain the company’s value just before a contentious divorce. The sole administrator, who co-owned the business equally with his wife, transferred ownership to an employee for just 2,500 euros. This was a fraction of the company’s actual value, which was estimated at 107,000 euros. The court described the sale as a sham, noting that it allowed the defendant to keep control of the business until legal proceedings eventually forced it to close.

The court sentenced the main defendant to 18 months in prison and a 1,080-euro fine. He must also pay 32,000 euros in compensation to his ex-wife. The employee, who acted as an accomplice in the scheme, received a six-month prison sentence, a 720-euro fine, and must pay an additional 21,000 euros in compensation. Both prison sentences are suspended, provided the individuals do not commit further crimes within the next two to three years.

This case highlights the difficulties of protecting the rights of partners in family-owned businesses, particularly when one person’s control over management is used to cause financial harm. In total, the court recognized 53,500 euros in damages, which the convicted parties must now pay to the plaintiff to cover her losses.