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Keeping It In the Family BY ANGELA BOUSALIS, ESQ.

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HINKING ABOUT STARTING UP A FAMILY BUSINESS OR LETTING YOUR children take over the family business when you retire or pass away? The smartest move for either case is legally planning ahead and your best bet to keep it in the family is to seek a general legal practitioner. Many times when a family member ends up in our office, it is due to a problem that could have been avoided through good legal planning. Without prior legal planning, a situation may tear the family business apart and cause it to be wound down, or worse, litigation may ensue for years. A family owned business may be defined as any business in which two or more family members are involved and the majority of control lies within a family. There are many successful family-run businesses out there, such as Comcast, Walmart, Ford, Carnival, Nike, Phillips, Samsung, Volkswagen, Anheuser-Busch InBev, and now Facebook, to name a few. Running a family business has its advantages. Mainly, you keep the wealth, if successful, in the family. You can keep the family employed. Family members are uniquely suited to understand each other because they have a closer relationship than outsiders. You can give family members a solid informal training. Family members are committed to the success of the business. However, the disadvantages can quickly and suddenly put an end to the business. The three most common disadvantages are discord or rivalry between family members at home affecting their work; lack of business continuity or successful succession, and divorce. For example, the family hierarchy at home may or may not be the hierarchy at work: at home Dad makes the rules, but at work Mom makes the decisions, or maybe Son or Daughter wants to lead and it is difficult for the Dad to take orders from the child. Another example could be the head of the family passing away and leaving the children fighting over the business assets. Even when the head of the family leaves a will, there may still be hostility and rivalry if a child who has not been as invested as another in the business is left a piece of the business. Many disadvantages, as well as the most common three outlined above, can be avoided with legal planning. A shareholder’s agreement could have an employment agreement for each family member, that way when Dad calls in sick too many times, he can be terminated, or Daughter lands a new client she knows what her commission will be; thus, reducing or avoiding rivalry or discord. An operating plan can detail that Daughter can manage the opening of new offices and Son can make decisions on décor or the technology they’ll use, thereby decreasing the possibility that Dad thinks he always has the final word. In a recent survey, 75 percent of family business owners said they do not have a succession plan in place. Some family members struggle with the idea of letting go of the reins. Family business managers should consider who will run the business if the head manager no longer can. What happens if the manager is incapacitated temporarily or permanently? Having a succession plan in place helps keep the business running without interruption. A buy-sell agreement, prenuptial agreement, or postnuptial agreement can spell out what happens in a divorce. Seeking a general practitioner when looking for legal representation is your best bet, as issues in a family run business can cut across many legal practice areas. For example, discord in the family run business may arise from issues such as: rivalry, succession, or divorce. So having an attorney that is knowledgeable in family law, wills, trusts, probate, business law, contracts, pre-nuptial agreements, and succession planning is extremely important to be able to keep it in the family. After all, isn’t keeping it in the family the reason you create a family run business. Omaida Delgado, Esq. is the Managing Partner and Founder of Law Office of Omaida Delgado, P.A. Ms. Delgado practices in the areas of Real Estate Closings, Refinance title work, Foreclosure and Modifications, Landlord Tenant Issues, Criminal Defense, Family Law, and Traffic Citations. She also has over 20-years experience in the Air Freight Industry and Business Administration. The Law Office of Omaida Delgado, P.A. is a general practice firm based in Doral, FL that represents corporate and individual clients in transactional and litigation matters thoughout Miami-Dade and Broward counties. For more information, please visit www.lawyermeup.com or call 305.888.8896.

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Traffic Ticket Defense • DUI • Landlord Tenant Personal Injury • Family Law Real Estate Closings • Foreclosure Criminal Defense

Omaida Delgado, Esq. Angela Bousalis, Esq. for a consultation Please contact our attorneys at

305-888-8896 Our law firm is located at: 10050 NW 116 WAY, STE 13 B, DORAL, FL 33178 hours: Monday - Friday from 9:00 AM to 5:00 PM There is free parking at this location as well as parking and accommodations for the disabled. We speak Spanish. All major credit cards accepted.

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June 2016

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The Florida Villager :: June 2016 Edition :: Coral Gables/South Miami  

The DeValdivielso Team is on the Cover! #HappyFathersDay . Be sure to check out our 2nd Annual Father's Day Feature!

The Florida Villager :: June 2016 Edition :: Coral Gables/South Miami  

The DeValdivielso Team is on the Cover! #HappyFathersDay . Be sure to check out our 2nd Annual Father's Day Feature!

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