Small business owners facing divorce have a lot to lose in the process, so it’s important to choose a path that works best for their situation. Collaborative divorce is a specific type of process for getting divorces that helps small business owners value and divide the business in a way that efficiently keeps the business running, provides for privacy, and can result in the best outcome for both parties.
Collaborative divorce provides an opportunity for couples to work together with attorneys and neutral experts to achieve a favorable result for all parties—outside of the courthouse. It is well suited for the complexities and challenges of divorcing with a small business. We explain why below.
| Need a refresher on Collaborative Divorce? Read our “What is Collaborative Law?” post here. |
It’s easier to keep your business running.
The first advantage to collaborative divorce is that the spouses do not work against each other as they would in litigation. In a collaborative divorce, you are able to work as a team with your spouse with two collaborative attorneys, a collaborative coach, and possibly a neutral financial professional. You are encouraged to be open and work toward a resolution together. This is important for small business owners because this collaboration makes the divorce less likely to interfere with the workings of a small business. Particularly if they own the small business with their spouse, it can be difficult for individuals to focus on their business while at opposite ends of a bitter legal battle.
You control the process and the outcome.
In litigation, the court controls the divorce process. Your case is put on a conveyor belt and assigned court dates based on the court’s schedule, not yours. In collaborative divorce, you and your spouse have control over the scheduling of any meetings and don’t have to engage with the court until you’re ready to file your settlement. This can be particularly beneficial for small business owners, who often have demanding schedules.
In litigation, parties are also unable to control the outcome of their divorce. Although each individual’s attorneys will try to get the best deal for their situation, the court ultimately decides the final outcome. Collaborative divorce allows you to find common ground and work out an equitable result. For small business owners, this allows small business owners to consider creative solutions to challenges, such as an inability to immediately buy out their spouse’s interest in the business. As in all cases, the court doesn’t understand what is best for you and your business — You do.
Collaborative divorce is confidential.
The public nature of litigation is sometimes concerning for small business owners. Many of the filings are public documents, and parties present their sides of the cases in a courtroom that can be full of people. In collaborative divorce, negotiations between spouses are entirely confidential, and only the pleadings and Separation Agreement is filed with the court.
There’s more room for creative solutions.
Because spouses can freely discuss ideas and concerns in the collaborative process, there is more room for creative solutions than in a litigation. In addition, parties can involve a financial expert who can analyze the best outcome for both parties — not just for one party.
It costs less time and money than litigation.
Finally, litigation can be expensive and time consuming for multiple reasons. First, it involves multiple attorneys and experts. It can also involve a long and costly discovery process. It often involves multiple hearings and can involve a lengthy trial. Litigated divorce takes two years on average.
Collaborative divorce, on the other hand, does not require any judicial intervention. It still involves one attorney for each spouse, but any experts are singular neutral experts. The timeline of collaborative divorce largely depends on the parties, but many are resolved in months. Collaborative divorce therefore can save both time and money, which can be particularly important for small business owners who are also juggling the management of a business.
Only attorneys specifically trained in collaborative divorce can represent people using this process. Both parties need their own, independent attorney. If you’re interested in working with us, schedule a consultation with us today. For your spouse, the Massachusetts Collaborative Law Council has a list of attorneys who are trained.
