Family Businesses

Preservation of the Family Business:

Mediation allows the divorcing couple to work together to find solutions that can help preserve the family business. This may involve discussions on ownership, management, or even the possibility of co-owning the business post-divorce. Mediation can be particularly important for families who want to maintain the continuity and success of the business.

Minimizes Business Disruption:

Litigation can be highly disruptive to a family business.  In litigation, it is common for parties to seek a business valuation, which can cause time, money and effort to obtain the financial data for the expert to value it. Mediation tends to be a less adversarial process, which can help reduce the emotional strain and potential conflicts that may arise from a court battle. By finding mutually agreeable solutions, the family can often avoid the disruptions that come with prolonged legal proceedings.

Clear Communication and Decision-Making:

Family businesses often involve intricate financial and operational details. Mediation encourages open and constructive communication between spouses, ensuring that both parties understand the complexities of the business. This can lead to more informed decisions about the future of the business.

Customized Solutions for the Family Business:

Each family business is unique, with its own set of challenges and opportunities. Mediation provides a platform for the divorcing couple to create a customized plan that addresses the specific needs and circumstances of the business. This level of customization may be challenging to achieve through a court-imposed decision.

Preserves Employee Relationships and Morale:

A contentious divorce involving a family business can have a significant impact on employees’ morale and productivity. Mediation can help maintain a more stable and positive work environment by minimizing disruptions and uncertainties related to the business’s future.

Cost-Effectiveness for the Family Business:

Litigation can be extremely expensive, and the costs associated with legal battles can have a substantial impact on the family business’s financial health. Mediation is generally a more cost-effective process, as it often requires fewer billable hours from attorneys and minimizes court-related expenses.

Allows for Transition Planning:

Mediation provides an opportunity to discuss and plan for the transition of ownership or management of the family business, if necessary. This can be crucial for ensuring a smooth handover and maintaining the business’s continuity in the long term.

Maintains Business Reputation:

A contentious divorce that becomes public knowledge can potentially harm the reputation of the family business. Mediation helps keep the details of the divorce private, allowing the business to continue operating without the negative publicity that can come from a highly publicized legal battle.

Fosters a Positive Co-Parenting Relationship:

If the divorcing couple will continue to co-own or co-manage the family business, mediation can help establish a positive and cooperative working relationship. This can be important for the success and longevity of the business, as well as for the well-being of any employees or stakeholders involved.

Promotes the Best Interests of Children and Family Members Involved in the Business:

Mediation can take into consideration the interests and well-being of any children or family members who may be involved in the family business. It provides a forum for discussing their roles, responsibilities, and potential future involvement in the business.