3 ways to handle business litigation involving family members

On Behalf of | Oct 31, 2022 | Business Litigation |

Maybe you started the business with your spouse and now strongly disagree with them about the future direction that the business should take. Perhaps you inherited the family business to share with your siblings, and now there is a dispute regarding the executive pay that each of you will receive.

Business disputes can be challenging to resolve, but they can be particularly fraught when the dispute involves members of the same family. Especially if you and your family member both work at the company every day, your disagreement could start to affect the business’s operations or employee morale.

Employing the right approach to resolving these business conflicts involving a family member can help preserve your relationships and your company.

Address the underlying issue

Spouses disagreeing about the future of their company might have personal goals that influence what they want for the business. Siblings disputing what each should receive as an annual salary may need to better understand what each family member does for the company.

Sitting down to have a guided discussion or possibly attempting counseling with a therapeutic professional could help your family members resolve the dispute or underlying family dynamic that has caused a business disagreement.

Don’t let the issue affect your work or home life

When a dispute involves a family member, it would be very easy for you to bring your work stress related to this conflict back home in the evening. On the other hand, you could very easily end up spending much of your shift at work complaining about the other party involved or focusing on a conflict instead of on business operations.

Doing your best to keep the issue from affecting your job performance and your family relationships can be a challenge, but it will minimize the long-term damage your disagreement causes.

Push for an amicable resolution

Although it may be necessary to file a lawsuit to resolve the issue, it will usually be in your best interests to find a way to settle outside of court whenever possible. Mediation and arbitration are both valuable support services for those hoping to resolve a business dispute where the other party involved is a family member.

Having a pragmatic approach to a business conflict involving someone you love will help you more effectively resolve the disagreement.