Estate planning for the family-business owner encompasses much more than developing tax strategies.  What’s at stake is the survival of the business itself—often the sole source of the family’s wealth.

There is often a forgotten component, that when omitted, can result in a perfectly drafted estate plan that ends up embroiling the survivors in court battles for years.  That factor is the emotional and very personal side of planning for the future of the business and the future of the family.

Without addressing the underlying emotional issues that often reside just below the surface before you focus on the technical aspects of estate planning, your time and money may be wasted and your plan may be doomed.

Our guests today, James Robinson, Partner, Schiff Hardin LLP, and Stephanie Brun de Pontet, Ph.D., an associate of The Family Business Consulting Group, Inc. bring a wealth of first-hand experience helping family business owners address both the psychological and legal aspects of succession and estate planning.

Tune in at 1:00pm on June 17th to learn first-hand how you can ensure a successful transfer of your business and your wealth.

Our guests:

James Robinson

James R. Robinson focuses his practice on the wealth transfer and business succession planning needs of families and closely-held businesses. He concentrates on estate and gift planning, business succession planning, wealth preservation, sophisticated  tax planning, and charitable giving.

He also provides fiduciary counseling and dispute resolution, and advises tax-exempt organizations on formation and operations.

James is the author and co-author of numerous publications on his area of expertise, including his most recent article, “The Sea Change in Generational Wealth” published in the June, 2010 issue of Private Wealth and Financial Advisor magazines.

He is a graduate of the University of Colorado, received an M.A. from New York University..  James graduated from Emory University School of Law (J.D. with high honors) and was Executive Managing Editor of the Emory Law Journal.  He has been admitted to the bar in Georgia, Florida, Tennessee and the U.S. tax Court.

James R. Robinson, Partner, Schiff Hardin LLP, Atlanta, GA – 404-437-7038  Email: jrobinson@SchiffHardin.com

Stephanie Brun de Pontet, Ph.D.

Stephanie Brun de Pontet, an associate of The Family Business Consulting Group, Inc., specializes in advising family enterprises facing important transitions.

Stephanie has extensive experience working with sibling teams, and developing training programs to educate the next generation about stewardship, and other family business best practices.  A recognized expert on the topic of succession, Stephanie frequently collaborates with clients on key aspects of this process, such as establishing succession plans, drafting needed policies and oversight structures, and building a framework for next-generation collaborations.

Stephanie brings a unique combination of knowledge and experience from the fields of management, entrepreneurship, and psychology to her work with family business clients. Prior to coming into the field of family business, Stephanie worked for a number of years as an entrepreneur and an advisor to closely held businesses. She holds a PhD in psychology as well as a Masters in Business Administration (MBA).

In addition to her consulting work, Stephanie is the Executive Editor of the Family Business Advisor and teaches the Family Business Management course at Georgia State University. An active speaker and researcher, Stephanie frequently presents on various topics of “Best Practices” in family business management. In 2008, Stephanie was awarded the Family Firm Institute’s Outstanding Doctoral Dissertation Award for her research on family business succession, and she currently serves on the editorial board of the Family Business Review.

Stephanie has also served on advisory boards for a number of non-profit organizations, and is currently active in her children’s school and the Metro Atlanta Chamber of Commerce. While living in Canada, she was a board member of the Montreal chapter of the Canadian Association of Family Enterprise (CAFÉ).

Stephanie moved back to the United States with her husband and two daughters in 2005, and they live in Atlanta, Georgia.

Stephanie Brun de Pontet, Ph.D. email: Brundepontet@efamilybusiness.com 678-773-1675 The Family Business Consulting Group, Inc. · 1220-B Kennestone Circle Marietta GA 30066 Phone 888-421-0110 · Fax 770-425-1776

Sunset Family Business Radio

Recap: Marriage, Divorce and Your Family Business

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Family Business Radio’s guest on June 10, 2010 was Tamar Oberman Faulhaber, family law attorney with Vernis & Bowling of Atlanta.  Hosts Meredith Moore and Pat Romboletti held a fascinating discussion with Tamar, inspired by the sobering statistic that, while just 30% of family businesses transition to the second generation, in the event of divorce, the succession rate is even smaller with only 10% of spouses continuing to operate the family business together.

One of Tamar’s specialties is that she starts with a new client by asking what the needs and goals are at the end of the process; that is, what will improve their lives once everything is over? Beginning with the end, in other words. Once those points are articulated, then the legal strategy aligns with achieving those goals, which helps avoid getting bogged down in revenge and retribution (however human those tendencies are). In this way, the focus is on the future, rather than the past.

According to Tamar, the best thing that you can do for yourself if you are contemplating a divorce is to get educated on Georgia law and how it impacts divorce. The more you are informed about the particularities of Georgia law, the better off you will be. For instance, if someone already has a business when first getting married and there is a subsequent divorce, then only the performance of the business during the marriage (its growth or decline) is figured into the divorce settlement. Also, in Georgia, property is divided according to what is equitable, which means what is fair and not necessarily that the assets are divided in half. For alimony and child support, income is considered to be gross income from any and all sources.

Common mistakes Tamar has seen with divorces in family businesses.

• Lack of pre-planning. When there’s a new husband or wife, whether working or non-working, introduced into a family business, there are important business aspects to navigate around and through.
• To operate in panic-mode. She has seen people who go into shellshock and completely shut out their lawyers, not even sharing relevant information. “The #1 asset you have in court is your credibility,” she said. The greater the transparency, the greater the credibility.
• The unpredictability of  juries—(and in Georgia—you could easily find your fate I in the hands of a jury). While judges know the intricacies of what works with divorces, juries do not necessarily. They are notorious for thinking it’s all so easy—“just give him half of the business…”—and not understanding the impact on the business. Besides, juries are often expensive and are risky for both sides. And yes—the talent of your lawyer really comes into play with juries.

A typical trusted advisors team that Tamar puts together might include the client’s CPA, a forensic CPA, financial advisors, occupational therapist (to assess the ability of a person to earn a living), and a business evaluator-appraiser. “It all depends on the circumstances,” she said.

And what can you do before it gets to the divorce stage? When first entering into a marriage, it’s not just about flowers and china patterns. Be clear-eyed about the family business. Ask yourself: what is the worse thing that can happen? Talk about it, matter-of-factly and develop workable solutions. Again, think in terms of the end—but with this significant change: what do you want out of the marriage?

This entire conversation is available as a download from our website. Please do so. Tamar has a practical, pro-active and positive approach to handling divorces that we know you will appreciate.

Tamar Oberman Faulhaber, Esq., Vernis & Bowling of Atlanta, LLC, 7100 Peachtree Dunwoody Road, Suite 300, Atlanta, Georgia 30328, Phone: (404) 846-2001, Fax: (404) 846-2002, Email: TFaulhaber@Georgia-Law.com, Website: www.Georgia-Law.com