Couples in New Mexico are well aware that disputes occur in a marriage as well as in the divorce process. Moreover, some couples will seek the aid of the court to decide the terms of their divorce settlement, while others might try to work through all the phases and decisions of the divorce through other means. The process that is commonly used is called divorce mediation and could be a useful step to include in dissolution if a family business is involved.

A Census Bureau report states that roughly 3.7 million businesses are owned by a team of a husband and a wife. Furthermore, with the divorce rate staggering just around 50 percent, it is important for spouses to address the needs and potential risks a business could endure if the couple were to divorce.

Through divorce mediation, the spouses could discuss and negotiate all the terms of the business, including the status of it post-divorce. In most cases, a mediator will meet individually with each spouse and then meet with both spouses together to discuss ways they could reach a divorce settlement that considers the needs of each spouses regarding the business. This process could prove rather helpful and could ultimately be the step to avoid the business suffering from the divorce.

The divorce process means considering a lot of factors and making numerous decisions. It is important that all disputes get worked through and agreeable terms are reached. If this does not occur, post-divorce issues could arise and cause harm to their post-divorce lives and the function of the business after the divorce decree was made.

Source: Wealth Management, “Family Business and Divorce,” Bruce Provda, Dec. 15, 2014