Family Business Blog
Sep 15, 2017
When Equal May Not Be Fair
Often one of the concerns that families raise with us is the issue of being fair to all their children. The issue generally arises when discussing preparation of wills or the transfer of ownership of the family business. Does this necessarily mean an equal division of the family assets?
What if one child is actively working in the business at a senior level and making a significant contribution to the wealth of that business? Should that contribution be recognised? What if one child is disabled or disadvantaged in some other way? Does 'need' play a part? These questions often give rise to a great deal of so searching and there are no simple answers.
In reality it's a question that goes back to the core issue in family businesses; that troublesome area where 'business values' and 'family values' overlap. Which value system is predominant in your business? Have the differences between these value systems been discussed and strategies to minimise conflict been enunciated? There are no easy answers. The key is to devise strategies and processes that set out the ground rules that govern actions where the overlap occur.
This rarely happen spontaneously, planning is required. Outcomes need to be documented so that all involved know the rules. The process of developing a 'Family Constitution' is one way this can be achieved.
We have a range of informative articles, processes and programs that canvas these issues in the Resource Centre.
Just click just on Articles
What if one child is actively working in the business at a senior level and making a significant contribution to the wealth of that business? Should that contribution be recognised? What if one child is disabled or disadvantaged in some other way? Does 'need' play a part? These questions often give rise to a great deal of so searching and there are no simple answers.
In reality it's a question that goes back to the core issue in family businesses; that troublesome area where 'business values' and 'family values' overlap. Which value system is predominant in your business? Have the differences between these value systems been discussed and strategies to minimise conflict been enunciated? There are no easy answers. The key is to devise strategies and processes that set out the ground rules that govern actions where the overlap occur.
This rarely happen spontaneously, planning is required. Outcomes need to be documented so that all involved know the rules. The process of developing a 'Family Constitution' is one way this can be achieved.
We have a range of informative articles, processes and programs that canvas these issues in the Resource Centre.
Just click just on Articles
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