Whalesbook
Court Demands Massive Bond
A US court has ordered Zoho founder Sridhar Vembu to post a staggering $1.7 billion bond as part of his divorce proceedings. The January 2025 order cited significant concerns over the movement of assets following the initiation of legal action.
Asset Movement Concerns
The court found that transfers of assets after the divorce petition was lodged violated existing restraining orders. These movements risk undermining the fair distribution of marital property and could prevent the respondent from receiving any financial award if assets are moved outside the United States. Vembu, who relocated to India in late 2019, initiated divorce proceedings in 2021.
Community Property Law
Under California family law, property acquired during the marriage by a couple residing in the state is considered community property. This legal principle applies irrespective of where the assets are held, ensuring both parties have a claim to assets accumulated during their union.
Rejected Explanations
The court was unpersuaded by explanations offered for transactions involving Vembu, Zoho, and T&V Holdings Inc. Reasons cited, such as avoiding US tax regulations, were deemed unconvincing. The court concluded that a substantial bond was essential to protect the respondent's entitlement to her share of the marital estate.