Friday, January 15, 2021

"Don't let divorce derail a career"/ "Getting divorced? Your business may be a moving target"

Dec. 29, 2017 "Don't let divorce derail a career": Today I found this article by Ron Schulman in the Globe and Mail:

Ron Shulman is the founder of the Shulman Law Firm, an exclusive family law practice focused on resolution and ensuring their clients are prepared to confidently move on with their lives.

The beginning of a new year always signifies change, but with change come challenges. A large majority of unhappy couples decide to begin the divorce process after the holidays, and in January, 2016, the number of divorce inquiries to our office was double the monthly average. In the same month the year before, we received almost triple the usual number of inquiries.

The statistics in this country tell us that 41 per cent of people will find themselves having to go through a separation or divorce at some point in their life. This is never easy on people emotionally and in fact is second only to the death of a spouse in terms of stressful life events.

 But an important aspect that cannot be overlooked is that divorce can seep into people's professional lives and significantly affect their careers.


You've worked hard to build and develop your career. Don't let an emotional hardship such as divorce negatively affect your job performance or, worse, lead to job loss.

Below are tips we share with our clients to help them navigate the challenges of a divorce, specifically when dealing with work and career issues:


1. Let HR know what's going on

If your divorce is complex or acrimonious and you think (or know) that you will be in court, it's a good idea to speak with your human resources manager to let him or her know that you will need time off. While most court dates are scheduled well in advance, urgent motions can arise very suddenly. You may also require pension and benefit information, and the earlier you can let HR know you will need this information, the better.

2. Find out what resources are available to help you cope

If you are having trouble staying focused at work, find out if it is possible to take a short leave of absence or work from home a few days each week. Family law counselling is often available through an employee benefits plan, and there are cost-effective options if you don't have coverage. You won't be of much use to your company or co-workers if you are consumed by your divorce.

3. Maintain consistency and routine in the workplace

Remember that this is not the place to vent to your co-workers about how much you dislike your ex. Make sure there is a clear divide between your professional and personal lives. Some people find that keeping a familiar work routine provides a bit of stability during an unstable time.

4. Don't quit your job or scale back for the purposes of reducing support

If you have a job that you enjoy, don't attempt to sabotage it in order to pay your ex less spousal or child support. A judge may see through this and impute income for support purposes. Ultimately, the benefits just do not outweigh the costs.

If children are involved and you have shared custody (an arrangement for both parents to share the amount of time with their children over the course of the year), single parenting provides opportunities for more time reading and increasing industry knowledge related to your career. Furthering your career can be a positive focus at a difficult time.

For employers with valuable employees, knowing how to offer support during emotional hardships such as divorce can be an asset to the business. Having support mechanisms in place or a list of referrals for counselling will be of great benefit. This leads to stronger relationships with employees, shows empathy and improves retention.

As a family law firm, our role is to assist our clients to look past the emotional hardship and pain that inevitably flows from a separation. Retaining a lawyer can very often relieve some of the stress that arises by providing an objective view.


Divorce is a very difficult process for anyone, but having a plan ensures you maintain some level of control. It also ensures a much better chance for you to move on and confidently enjoy the next stage of your life. Keeping your career on track during this process is a key part of a balanced life.

https://www.theglobeandmail.com/report-on-business/careers/leadership-lab/dont-let-divorce-derail-your-career/article37431864/

Jul. 20, 2018 "Getting divorced?  Your business may be a moving target": Today I found this article by Nathalie Boutet in the Globe and Mail:

Boutet Family Law & Mediation, Toronto

Executives and business owners are accustomed to running the show but an upheaval in their personal life, such as divorce, can have a significant toll on their work, their employees and the business performance as a whole.

For high net-worth individuals with established businesses, the financial situation for both spouses can be complicated, with more at stake. But a rapidly growing startup can be equally problematic as valuations can turn into a moving target.

However, perhaps the most challenging situation, in terms of both its personal and financial implications, is when spouses are also business partners – where the exit of one can have a major impact on operations.

Ideally, spouses proactively prepare themselves upfront through marriage and shareholder agreements, in order to protect the business should divorce, or even unexpected death, occur. But while divorce is never easy, there are other ways to minimize the negative impact on both the individuals involved and their business.

For example, recent research from the Canadian Research Institute for Law and the Family (CRILF) shows that couples who avoid the courts and opt for alternative legal processes such as collaborative law and mediation benefit from shorter average timelines and lower legal fees over litigation.

 When comparing the various processes (collaboration, mediation, arbitration and litigation), collaboration was the most cost-effective ($6,269 on average for low-conflict disputes), coming in at about half the cost of litigation at $12,395. A similar gap holds true for high-conflict disputes, where the estimated average collaboration costs were $25,110 compared with $54,390 for litigation.

Whatever the choice of process, there is no way to avoid the social and emotional toll of a failed marriage. Going through a separation often demands hours of a person’s time as the couple work through everything from valuating net worth to custody disputes.

Those stress levels can often have a serious trickle-down effect on employees. The stakes are often higher when both spouses are partners in the business, given that divorce typically leads to the departure of a key individual.

To add insult to injury, the business owner may not be believed by the non-owner spouse if she or he attributes a decline in revenues, around the time of the separation, to business valuations based on historical data that may no longer be achievable. And the more mistrust between the spouses, the more financial details will need to be produced to fend off accusations of manipulating financial records.

If the matter ends up in court, the couple’s personal affairs and business financial statements become public records. In addition, they may end up spending more to obtain business valuations if there is no trust between the parties because the non-owner spouse will often question the validity or integrity of the business valuation commissioned by the business owner.

A well-managed collaborative process can provide faster results and privacy. Financial statements and the agreement reached by the couple remain private.

Another advantage is that a collaborative process uses Harvard’s “interest-based negotiation” as opposed to other processes that use positional bargaining. In collaborative negotiations, the couple are encouraged to select a neutral financial adviser who will perform the valuations on behalf of the team in an unbiased manner, saving the couple the stress and cost of multiple valuations.

A spouse who is disillusioned with the process can encourage the other spouse to try another one. While this may involve getting new collaborative lawyers who will need to get up to speed, cost savings could be achieved when both spouses work with a neutral business valuator they both agree on.

The collaborative process is gaining in popularity such that the federal government’s recent proposed amendments to the Divorce Act include an obligation on the part of family law lawyers to advise their clients of collaborative negotiations.

The faster the family can get through this process and re-establish their personal lives, the faster people can get back to more normal productivity levels.

https://www.theglobeandmail.com/business/careers/leadership/article-getting-divorced-your-business-may-be-a-moving-target/

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