How can Divorce Mediation Preserve my Family-Owned Business?
Only a couple of generations ago, split families were quite uncommon. Today, experts estimate that up to six out of ten marriages break up. Divorce is always tough on a family, but within the context of a family business, it can be much more complicated. Unfortunately, many business-owning families don’t take prior steps to prevent the dissolution of a marriage from jeopardizing the family enterprise.
Dispute resolution processes, including negotiation, arbitration and divorce mediation, can offer a reasoned, problem-solving approach to continuing or dividing interests in your family-owned business. These strategies can lead to a peaceful settlement of issues and preservation of the family asset.
Divorce Mediation Training – Educate Yourself about the Process
Mediation is a good alternative to litigation in the resolution of conflicts that arise from divorce. In order to understand the philosophy and stages of mediation, as well as the functions of a mediator, divorce mediation training can provide a basic understanding of mediation techniques and tactics. It is also highly advisable to bring in an independent third party to divorce mediation proceedings where a family business is involved.
Divorce Financial Planning – Protect Your Family and Your Business
Studies have shown that divorce impacts the short term financial performance of family-owned businesses, so it is prudent to “divorce-proof” your business now. Pre-nuptial agreements, trusts and buy-sell agreements are all divorce financial planning tools used by forward-thinking family business advisors.
To learn more about divorce-related business transition and how divorce mediation can help preserve your family enterprise, please contact us at the Alberta Business Family Institute. Our Relationship Contracts course may also be of interest to you.