The court process allows for only a rights based determination of the issues at hand. However, there are many intricacies involved when separation and divorce include a family business. As an alternative to a purely rights based approach, other options can be considered in a collaborative approach, including:
- Family trusts or holding companies as a method of sharing income from the family business
- Tax planning, avoiding the possibility of triggering a Canada Revenue Agency audit
- Considering the formation of a new family trust
- Employment of children in the family business
- Estate, succession, and capacity planning
- Ensuring insurance is in place to cushion the effects of any risks
- Gifting shares or portions of the family business to children or other family members
- Maintaining the privacy of the family business
- Managing the continuation of income streams
- Splitting income amongst family members
- Delaying equalization or sharing business payments (Ie: if and when the family business sells)
- Preserving the family legacy for generations
- Recognizing and predicting the ebb and flow of the market and business patterns
