"FAMILY ISSUES IN FAMILY BUSINESS OPERATIONS" [2019] ELECD 1423; in Zwick, A. Gary; Jurinski, J. James (eds), "Tax and Financial Planning for the Closely Held Family Business" (Edward Elgar Publishing, 2019) 35

Book Title: Tax and Financial Planning for the Closely Held Family Business

Editor(s): Zwick, A. Gary; Jurinski, J. James

Publisher: Edward Elgar Publishing

Section: Chapter 3

Section Title: FAMILY ISSUES IN FAMILY BUSINESS OPERATIONS

Number of pages: 45

Abstract/Description:

This chapter focuses on family issues in business operations. Family business planning must be carefully designed because it can have a dramatic effect on the finances of individual family members. Conversely estate and retirement planning for individual family members can have a major impact on the business. Unfortunately family members who work together in a business are not always able to get along. This chapter details common family issues, including divorce, and other conflicts, to enable an adviser to anticipate problems that a particular business may experience over the years. The chapter describes the importance of dealing with “soft issues" – family and personal problems that do not have quantifiable solutions and whose answers cannot be expressed in simple numeric terms. The chapter also details devices like family mission statements, family strategic plans, family constitutions, and family councils may eliminate conflicts. Finally, mediation and arbitration can minimize the impact once conflicts arise.