Retroactive adjustment of a prenuptial agreement due to a lapse of the basis of the contract

The settlement of a claim for equalization of gains in lieu of performance continues to occupy professional practice. The Lower Saxony Tax Court recently had to deal with the question of whether a retransfer to the spouse of shares in a limited liability company, which had previously been acquired by the wife in lieu of performance as part of the settlement of a claim for equalization of gains, due to a subsequent amendment of the contract, can retroactively extinguish a capital gain that originally arose.