Few things can be more emotionally devastating than a relationship breakdown, whether that’s in a business setting – or – on the home front. No one ever likes to anticipate these events could occur, but what do you do if you’re faced with a relationship breakdown? If both spouses are active in the business, the emotional and personal financial considerations are likely to be exacerbated.
While a relationship breakdown is often seen as a personal matter, the impact on families and extended family can be significant. The impact on a family business can also involve employees, creditors, suppliers, shareholders, other stakeholders – even down to the adviser relationships. For a couple who shares professional advisers, will the relationships stay the same once the couple is divorced? In many cases they don’t.
Imagine someone was to ask you: “What would you like the legacy of this outcome to look like?” For a business owner, finding the right allied professional to put the governance structures in place to ensure the business won’t be a casualty of the process is a key focal point. The team of professional advisers that help look after both business owners and the business’ needs can be a great resource as well. While not all the legal, accounting, insurance or investment advisers may feel comfortable taking on this role, it can be refreshing to find those who are willing to help.
What is this episode about?
Joining us on this episode are founders Lori Joyce of Betterwith Ice Cream, Rahul Aggarwal, founder of CleanDivorce, and Claire Sutton, Registered Clinical Counsellor and Family Enterprise Advisor, founder of Claire Sutton Consulting, Inc.
The episode emphasizes the value of considering a multi-disciplinary team approach to encompass the needs of the couple and the needs of the family business when challenged by the headwinds of relationship conflict. Our guests showcase the impact of good governance structures combined with open communication practices.
What are we hoping will come out of this show?
It can be difficult to separate emotions from pure business decisions, a lack of clear goal setting and broken communication processes. Taking steps earlier rather than later when a relationship starts to break down could provide a mechanism to save the business. While the marriage of a couple who owns a family business may fail, with good planning and frequent reviews, the business does not have to be a casualty of the process.
Jim Doyle, Doyle & Associates Private Wealth Management, Investors Group Financial Services Inc.
This is a general source of information only. It is not intended to provide personalized tax, legal or investment advice, and is not intended as a solicitation to purchase securities. Jim Doyle is solely responsible for its content. For more information on this topic or any other financial matter, please contact an IG Wealth Management Consultant. Views of guest speakers may not be shared by IG Wealth.