divestment

In business law, divestment is when a business sells off its subsidiaries , investments , or other assets for a financial, ethical, or political objective. To do so, the business must partially or fully remove the asset from its financial records ( books ). Businesses can divest through sale, closure, or bankruptcy .

In property law, a vested estate subject to divestment is when the recipient possesses a vested estate but may lose it in the future (divest) if a condition subsequent occurs.

[Last reviewed in January of 2022 by the Wex Definitions Team ]

Keywords

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