Divorce Support Roundtable

News » Divorce is bad for business

Posted by Leisa MacIntosh on 8 July 2011

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Divorce is bad for business.  It’s a well known fact.  Businesses can suffer significant losses because of divorce litigation.  Here are a few reasons why:

  • Court proceedings risk private affairs and business information from leaking to the public, potentially compromising the business reputation;
  • the CEO or owner’s focus on the business is distracted by the personal issues;
  • word of the divorce spreads quickly in the business community, causing concerns and rumors about what might happen to the business;
  • employees of a small business often worry about their job stability;
  • significant company time is spent complying with document requests for court;
  • relationships with bankers and suppliers are impacted; and
  • competitors seize the opportunity to create a competitive edge.

No matter how acrimonious the issues are between the spouse and the business owner, damage to the business is good for no one. 

The good news is that ‘collaborative practice’ addresses theses concerns and provides ways to reduce the burden on a business.  By choosing a better legal process like collaborative practice, both spouses can find better results.  Check out our ‘Collaborative Practice’ page for more information.