In a busy business world, it’s hard to make sense of complex legal terms and concepts – that’s why we’re going to discuss what sequester means.
The term “sequester” originates from the Latin word secestari, meaning “to mock.” But, today, its definition is much different. Essentially, sequester is the act of setting something aside, separating it from the rest, or isolating it in a certain area.
In the legal world, this may refer to a court-ordered process wherein a party temporarily separates their assets from another entity or leaves a shared relationship. It’s typically done to ensure that assets are protected from any claims or settlements and to further prevent any disputes.
An example of sequester could be a situation where a husband and wife are splitting up and have to divide their property. The court may decide that they need to sequester certain assets during the divorce process. This way, both parties are guaranteed to keep their own respective financial holdings.
Sequester is also seen in the business world, especially when companies need to disassociate with other companies financially. For instance, if one company wants to end its relationship with another, the court may decide that it’s necessary to sequester certain assets from one or both parties in the transaction. The separation of assets further secures both parties, as disputes over assets can no longer arise.
Wrapping It Up
In conclusion, sequester is a legal term that refers to setting something aside and isolating it from the rest – typically done to protect or separate assets during a dispute, court case, or dissolution.