Family Disputes: Money Matters
Of all the issues that come up with co-parenting “families of divorce” none are as insidious or downright ugly as “matters of money”. Having attained status as a C.F.P. over the years, I witnessed some of the acrimony the author describes and she is, unfortunately, not exaggerating.
The end of the year will often be an important “plumb line” for decisions about finances and investment assets, in particular. So with the changes to Alimony Payments along with some other adjustments in the Tax Code there might be a few unpleasant surprises that warrant discussion and, as the author points out, a lawyer’s office may not facilitate thebest overall result. If you, or anyone you know, comes into a situation like this and help might be needed please contact me with your questions.
Here is the link to an article by Carolyn Rosenblatt in which she advises F.A.’s to consider a mediator if and when they come up against a real struggle.
What Can Advisors Do When Family Disputes Threaten Client Wealth?
Sometimes it’s fighting between parents and the next generation. Sometimes it’s sibling conflictsthat have existed for many years. Unresolved family disputes can destroy successful intergenerational wealth transfer with or without a family business at stake. When you’re managing the money, it can feel like torture seeing your clients behave so destructively. Expensive lawsuits or standoffs that damage businesses the family is arguing aboutcan threaten the very work you’ve done over time. You’ve tried to preserve wealth and keep families on track. They can ruin your best efforts.
Mediation is one underutilized way to resolve conflicts. You may be able to help your clients by suggesting mediation and finding a good mediator.
It starts with the help of a trained and qualified mediator who understands conflict resolution principles as a professional. The purpose isn’t to change any individual’s personal traits; rather, it’s to see if the family can come to some rules of engagement on the path to reaching agreements on specific issues. Focus isn’t on who’s right or wrong. It’s on the tasks at hand. Reaching an agreement about division of authority can be a major step forward.
Based on my own experience over many years of being an advocate at mediation in lawsuits, I saw that most of the time, matters get settled by the mediation process.
Perhaps the greatest benefit of a family mediation is that the underlying emotions that typically drive the conflict can come to the surface in a neutral setting. The mediator guides the discussion and helps each party identify and clarify what they want, guiding them to their own solutions. Generally, this isn’t something they can do on their own. They’re too caught up in resentment, anger, fear or other feelings.