Attorney
If you own a business and you’re facing divorce, you’ve probably already been told that mediation and collaborative divorce are both “alternatives to litigation.” That’s true, but it’s about as helpful as saying apples and bananas are both fruit. For a business owner, knowing the difference matters, because the divorce process you choose will shape how your business gets treated during and after the divorce.
Below is a point-by-point look at how collaborative divorce and mediation actually compare, with some suggestions for how to decide which one fits your situation.
Who’s Steering the Process?
In mediation, a neutral third party helps you and your spouse negotiate directly (although both sides often have an attorney in the room too). The mediator doesn’t advocate for either side; they attempt to push you toward a mutually agreeable settlement.
Collaborative divorce works differently. Each spouse retains their own specially trained collaborative attorney. (Bob Matteucci is a member of the International Academy of Collaborative Professionals (IACP).) If there are neutral third parties in the room, they are there to provide information or support. It is common for business owning couples to bring in a financial adviser to assist. Couples may also bring in counselors, coaches, or co-parenting advisors. Everyone around the table works together to find a path forward.
Privacy and Pace
Both processes are private and both avoid public court hearings.
Mediation tends to move faster and cost less, since it’s usually a shorter series of sessions focused on specific sticking points.
Collaborative divorce takes more time upfront—assembling the team, gathering full financial disclosure, working through each issue methodically—but that investment often pays off in the long-run because you have taken the time to think through all the what-ifs.
How the Business Gets Handled
When your business is your most important martial asset, and keeping it running while you try to divide its value in half is number one on your divorce to-do list, mediation and collaborative divorce are both viable options.
Mediation works well when the valuation is fairly straightforward or you and your soon-to-be-ex generally agree on the numbers.
Collaborative divorce is often a better choice when the numbers are complex, and you want to investigate each option available to you. Bringing in a financial adviser, tax specialist, and/or business coach lets you dig into the long-term financial implications of different solutions.
So Which One Is Right for You?
If your business finances are relatively simple, you and your spouse are largely aligned, and you want a faster, lower-cost path to settlement facilitation, mediation may be all you need.
If your business is more complex (think multiple owners, a professional practice, significant goodwill value, or compensation structures that aren’t easy to untangle) choosing collaborative divorce, and having extra help at the negotiation table is worth it.
Serving Families with Dignity & Compassion
If you are struggling to figure out how to hold your business together as you navigate the divorce process, Attorney Bob Matteucci is here for you.
Bob brings a perspective to this decision that few attorneys in the Albuquerque area can. He’s one of only a few attorneys in New Mexico certified in collaborative divorce, he’s served as a mediator in divorces involving business assets, and he holds an MBA in addition to his law degree.
He’s also been through a divorce himself as a small business owner, which is part of what led him to law school in the first place. He is ready to help you make the best choices possible for you, your family, and your business. Please contact him today to set up a meeting.