A couple going through a divorce usually faces a complex clash of interests. When there is also a small business in the equation, things tend to become even more complicated.
Balancing business interests against personal concerns and emotions is not easy. However, many entrepreneurial couples still manage to avoid litigation by engaging in a rigorous process of mediation.
Mediation: a custom solution
Mediation is typically faster, cheaper and more private than litigation. Counterintuitively, it also tends to result in a more customized solution to property division.
If that sounds too good to be true, it is because mediation generally has more benefits than it has drawbacks. Litigation tends to be most appropriate for a limited set of situations:
- When one party does not agree to participate in the divorce
- When the situation demands more formal procedures
- When mediation fails entirely or does not succeed in all of its goals
There are various other reasons that a couple might choose to litigate. However, most prefer to attempt mediation first once they realize what is at stake.
Mediation and business
When dividing a business during divorce, it often makes sense to start with mediation. This is even more true if both spouses have a legitimate interest in the success of the company.
Mediation is the type of formal negotiation that business people often find relatively familiar. In fact, addressing the business division first often gives people the time and perspective necessary to handle other aspects of the divorce in a more logical and productive way.
It is never simple reaching a compromise that secures the futures of both parties and of the business. However, whether it is by litigation or by mediation, these are issues that divorcing couples must address before finalizing the dissolution of a marriage.