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,avested 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]
