FAQs Saving the Family Business Unbundled Legal Services

What techniques are available for preserving the interests our family business during collaborative negotiations?

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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