The Way You Divorce Could Save Your Business

posted 19 May 2011, 03:37 by Collaborative Divorce News   [ updated 19 May 2011, 03:41 ]
Let's paint a scenario.
 
Rob was a successful entrepreneur who had built up a business during his marriage. He had been married to Sarah for 10 years but the marriage had come to an end. Sarah knew little about Rob’s business and was concerned that she would lose out. Rob felt that the business was "his" rather than an asset to be shared.

A Nasty Divorce can mean trouble for Business.

The impact of a marriage breakdown and divorce ripples out well beyond the family home. A business caught in the cross fire of a divorce will suffer. Inattention from a stressed-out, depressed or preoccupied owner can lose customers and business opportunities.

Divorce costs can escalate substantially as competing lawyers and forensic accountants pick over the assets of the family. A business interest is a family asset. It can often be the most valuable asset, and the biggest bone of contention in a divorce. Valuing it is complex, costly and time-consuming. How and who values it can be a major flash-point of conflict. Aside from its financial value, the emotional attachments can inflame the one who created it as he or she faces the prospect of sharing it with the other who has had no involvement in it.

The process you choose for your divorce can determine its outcome

What Sarah really wanted was the security of keeping the family home, not an interest in the business. Rob wanted to keep control of his business and the future benefits it might bring. They both wanted to avoid the acrimony and trauma of a traditional adversarial divorce court process. They feared this might destroy the business and the wealth they were trying to divide. They didn’t want a Judge to determine their futures, they wanted to do this for themselves.

Rob and Sarah decided to deal with their divorce Collaboratively. Like many they found out about Collaborative Family Practice from friends. They each selected Collaboratively trained lawyers who introduced a Collaboratively trained financial advisor. The financial advisor was able to look from a neutral perspective at the assets of the marriage including the business, the family home etc and helped Rob and Sarah understand the division options open to them. A Family Consultant (Counsellor/Psychotherapist)  worked with them to address their emotions towards each other, develop communication and a level of trust between them. Through a series of meetings solutions were found and neither felt disadvantaged.

The collaborative divorce process proved to:

  • preserve the wealth held by Rob & Sarah and not destroy it.
  • ensure the right professional dealt with the right problem for Rob & Sarah.
  • encourage Rob & Sarah to think creatively and craft solutions that worked for them and their family.
  • enable them to decide and keep control of what happened & how fast it happened.

Every divorcing couple is different, and a collaborative divorce process is not for everyone. But Rob & Sarah found that a collaborative divorce can enable solutions to be found and destruction to be limited to those things that were important to them and their family.

To find out more about Collaborative Family Practice contact one of the specially trained collaborative lawyers in your area from the links on this website and they will be happy and able to assist you.