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 updated in January of 2022 by the Wex Definitions Team]
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