For family law attorneys, the equitable division of a family-owned or small business in a divorce is one of the most complex challenges a case can present. While you are highly skilled at navigating the emotional and legal landscape of a family’s dissolution, the intricacies of business law often require a different kind of expertise. These disputes extend far beyond a standard valuation; they involve untangling business governance, partnership agreements, and the nuanced fiduciary duties owed between business partners. A strategic partnership with a fiduciary litigation firm is not just beneficial; it is a prerequisite for ensuring a truly equitable outcome for your client.
A Focus on Fiduciary Disputes and Business Law
“When dealing with trusts, estates, or business interests in a divorce, the potential for conflict is significant,” observes Craig Frankel, a founding partner of Gaslowitz Frankel. “Our role is to bring clarity to these complex financial issues and advocate for our clients’ best interests.” Frankel is an experienced litigator specializing in fiduciary disputes, including business and contract disputes, who is known for his ability to achieve favorable results through both trials and settlements.
In Georgia, an equitable division state, a divorcing couple must divide the property acquired during the marriage. While family lawyers are proficient at getting valuations of businesses, they may not understand the intricacies of an operating agreement or other internal governance issues. This is where a partnership with a fiduciary litigation firm becomes essential. These attorneys provide the expertise to identify the nuances in a company’s operating agreement, which may contain specific and restrictive rules regarding the transfer or sale of interests. A key process is uncovering governance issues among business partners or shareholders, which can provide strategic leverage in a divorce negotiation, even if the business is financially sound. These are issues that a family law attorney may not be equipped to address.
Beyond the Numbers: The Importance of Fiduciary Duties
A business litigation attorney brings to the table a deep understanding of concepts such as breach of fiduciary duty, conversion, or misappropriation of corporate assets. These issues often arise when one partner, typically the one with higher earnings or more control, uses their position to the detriment of the business or to the financial disadvantage of their spouse/business partner. Robert C. Port, a business litigation attorney with extensive experience in both commercial litigation and fiduciary disputes, emphasizes the importance of understanding which roles carry fiduciary responsibilities. “This knowledge empowers you to proactively identify potential breaches of duty and assess the need for fiduciary litigation to protect your client’s interests,” says Port.
Port notes that when a dispute arises among officers, majority and minority shareholders, or partners, many businesses may have to consider dissolution, buy-outs, or transfers of control, a process often referred to as a “business divorce”. This requires a degree of negotiation and litigation similar to the break-up of a marriage.
A fiduciary litigation firm can provide the strategic guidance to navigate this process, from initial discovery and legal theories to participation in mediation or trial, and ultimately, to crafting a resolution that properly addresses the complexities of the business’s structure.
The attorneys of Gaslowitz Frankel have extensive experience in addressing the intricate issues inherent in will, trust, estate, business, and securities disputes. For reliable guidance in estate law and fiduciary litigation, contact the attorneys of Gaslowitz Frankel today.
