Divorce and the Family Business
Divorce is an unfortunate reality of life. In the United States,about half of first marriages and over 60% of second marriages end in divorce. When a family member active in a family business divorces, there are financial and emotional implications and challenges, which can be complex. These can often be resolved through family mediation.
Family Mediation is an effective method to address the issues in control, buy-outs, and sharing of marital estate that arise in divorces. Mediation can help the family preserve relationships with the former in-law, who is likely to remain in relationship with the family for the rest of his/her life due to the presence of children.
Valuation of the divorcing family member’s share in the business can be addressed by mediation, using the reports and assessments of valuation experts and appraisers. In face-to-face mediation sessions, the financial reports and information can be presented, understood, discussed, and evaluated. This can avoid a lengthy and costly valuation dispute that could end up in costly litigation personally damaging to family members.
If you are considering mediation services for your family business, and would like to speak with a MCFM mediator, search our database for family business mediators specializing in Divorce within Family Businesses within the Commonwealth of Massachusetts.
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