An Insight into Role of Collaborative Process in Protecting a Business During Divorce
Going through divorce proceedings can be a stressful experience. The court process may complicate issues, as it tends to be a lengthy and expensive. By utilizing family collaborative law you can make the process easier and achieve results within a very short period of time.
In this context, we will specifically look at benefits of collaborative process for protecting your business during a divorce.
Role of Collaborative Process in Protecting a Business
During divorce, assets division is determined by the court. According to laws, both parties are allowed to retain half of the share in assets which have been accumulated after marriage.
Additionally, the spouse with the lower net worth would receive equalization payment from the other spouse.
If you have a business then it will become necessary to perform valuation of the business and after that it will be divided between both spouses as part of the settlement procedure.
Negative Aspects of Court Proceeding
The negative aspect of court proceedings is that they are public by nature and can easily damage the reputation of your business.
In addition, there can be negative impact on employees, clients, and suppliers due to such court proceedings. This in turn will negatively affect productivity as well as viability of your business.
Benefits of Collaborative Process
All these problems can be avoided by using family collaborative law. Let us look at some benefits you will have from utilizing collaborative process.
• If couples opt for collaborative process then necessary steps can be taken to maintain integrity of your business.
• Moreover, there can be a shareholder's agreement that would clearly define the process to be utilized to help a spouse leave the business at the time of divorce.
• The agreement may also stipulate that spouse leaving the business would have to sell his or her shares to other shareholders.
Accordingly, all required aspects can be looked into in a very well planned manner, helping to reduce confusions and disagreements during the collaborative process.
The focus here is on preserving your business and avoiding court process since it can be quite lengthy. Such court proceedings can also have detrimental effect over your business and should be avoided.
Addressing an Impasse or Deadlock
Family collaborative law makes it easy to address any likely impasse or deadlock arising during divorce process. If such situation arises then lawyers have the option of:
• Selecting an outside third party to perform mediation for any major issue.
• Arbitration can also be utilized to break the impasses.
An arbitrator would be like appointing a private judge, whose decision would be final and a binding.
A Final Note
From above details it is quite clear that family collaborative law can be quite helpful in resolving issues, such as an impasse or deadlock, during a divorce and in getting a verdict that is helpful for both of you. Moreover, collaborative process tends to be far less expensive in comparison to court proceedings.