When facing the possibility of a divorce, many business owners are often concerned that this major life event will hurt their financial well-being. Will the business they worked so hard to develop be harmed? Will there need to be a valuation of the business or a buyout of the other spouse’s interest with other assets aside from the business? For business owners going through or contemplating a divorce, mediation or a collaborative divorce can be the best option.
Collaborative Divorce/Mediation Provides Privacy
Business owners may prefer to keep their financial information out of the hands of competitors and just generally want to keep things private. In traditional litigation, a lot of this information can become public, especially if there is a hearing involved. This may include disclosure of a profit and loss statement, income, and expense declarations, possibly a K-1 partnership form with the IRS, Schedule C, etc. Since court hearings are public, anyone can attend. Throughout the pandemic, most courts have utilized Zoom for certain types of court hearings, which are usually broadcast on YouTube.
In a Collaborative Divorce or Mediation, all financial documents are kept private between the couple and professionals assisting them. Financial documents are not filed with the court and there is no public hearing concerning the financial division of the business.
Collaborative Divorce /Mediation Provides More Options with Expert Guidance
In traditional litigation, settlement options are limited by the law. In Collaborative Divorce and Mediation, there are more options, and the couple can explore more creative and innovative solutions with professionals who tend to be “outside the box” thinkers. It all depends on the needs of the business and the agreement the spouses can reach.
A neutral financial professional is part of the collaborative team and helps to guide the spouses to make the best agreement possible that will preserve the business as well as meet their daily and future financial needs. The financial professional will help them to gather and organize their financial documents so they can decide what the next steps should be, both short term and long term, for the business.
The couple might also hire a financial expert to perform a business valuation. That valuation is shared, thus making the process transparent and confidential. Again, none of this information is filed with the court.
Rebecca Medina was rated “Clients’ Choice” on Avvo and for more information click here.
The Law Office of Rebecca Medina can help and support business owners facing divorce by utilizing the Collaborative Divorce process or Mediation. Contact us to schedule a consultation and learn more about how we can help you with any aspect of your divorce.
Rebecca Medina is an experienced Family Law attorney, mediator and Collaborative Divorce Lawyer serving the Fresno and San Diego areas. She handles cases ranging from complex divorce matters to child custody, spousal support, prenuptial/postnuptial agreements, QDROs and uncontested divorce cases. She was rated “Clients’ Choice” by Avvo.
Rebecca is committed to processes that are based on negotiation, compromises, and ultimately empower clients to have control over the decision making process in their family law matter, which can result in less stress and allow them to move to the next chapter of their lives with dignity. With a compassionate and dedicated desire to help her clients in what is often the most difficult time in their life, Ms. Medina carries herself with poise and can relate to her clients on a level that conveys trust and inspires confidence. Rebecca’s philosophy is to be honest, direct, and committed toward helping her clients resolve their family matters by offering processes that result in settlements and empower individuals.