Protect your family and business from trouble by retaining a good quality attorney.
Family businesses are an extremely important part of commerce in the UK. From small father-son businesses to large organizations providing employment and development, family businesses can leave a legacy not only to families, but also to the communities in which they work.
Despite all the wonderful things they bring to our economy, there are some complicating factors that can arise when running a family business. There’s an old saying never mix money and family, and while we don’t agree with that, it’s probably a good idea to hire a good, empathetic and experienced lawyer to work with.
In this short blog, we’ll give you a quick list of why you need a good lawyer when running a family business.
1 – The boundary between “Personal” and “Professional” is blurred
For most people, it’s easy to separate the personal from the professional. In households, marriages and families, each member often separates professionally, resulting in a sharp break between the two lives they lead.
In family businesses, you don’t get a clear separation between professional and personal. Every family business will know the Sunday dinner conversation that quickly turns from discussions of family life to business affairs in the blink of an eye. It’s not necessarily a problem until things go wrong or problems arise. It is at this stage that relationships can become strained or the relationships themselves can lead to poor trading conditions.
Having an empathetic lawyer on hand to help you navigate difficult waters can help protect your business and your relationships, leading to a happier family life and a more successful business.
2 – Estate planning and inheritance can cause business problems
When a business owner retires, retires, or dies, the question arises as to who the shares pass to, who the management of the business passes to, and how this might affect other shareholders.
We recently wrote about the importance for family businesses to have a will in place and we’re going to drive the point home yet again. Having a clear idea of where your shares will go when you die, whether in your will, company articles of association, or shareholders’ agreement, could be the difference between an already difficult time getting worse and a business who resists problems related to the succession.
An experienced family law attorney will help you settle your cases to protect your business and your family.
3 – Labor law can be more complicated in a family business
In some ways, running a business becomes more complicated when working as a family. How do you enforce an employment contract for a family member, for example? How do you fire or reprimand an underperforming parent? On the other end of the spectrum, how are you protected against shady employment practices if your boss is your uncle?
With a lawyer who understands you and your family business, it’s easier to navigate these choppy waters.
4 – Family members with different approaches to risk can make decision-making difficult
When multiple family members are in charge of running a business, there can be differing views on the best direction for the business to take. This can be particularly difficult when shareholder power is equal. With the help of a neutral lawyer, a family business can strive to move in the same direction and help define a decision-making process and a framework for the future.
5 – A trusted lawyer can provide balance and tell you what you need to resolve issues
The knowledge of a good family law attorney is vast. Whatever circumstances you find yourself in, they will be able to provide you with the calm and balanced advice you need and will be perfectly placed to tell you what and who you need to solve a problem.
By having legal counsel whom you trust, who understands you and your business, and who demonstrates empathy, care and diligence towards you and your family business, you are giving yourself an invaluable insurance policy. against issues that could derail your business plans and personal relationships.
Family law is not a “body of law”, it is a relationship. To go further, a family law attorney is not just a lawyer. He is an impartial family policy arbiter who will work hard to protect you from legal problems and preserve your family relationships.
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.