Business Inheritance Disputes
Business inheritance disputes in Sydney, NSW
Inheriting a business can offer the opportunity to continue a family legacy and reap the rewards of years of hard work, but can also be troubled with complexities, especially when disputes arise among heirs. Navigating business inheritance disputes requires careful consideration of legal, financial, and interpersonal factors. A Sydney and NSW wills and probate lawyer from Szabo & Associates Solicitors can help you resolve your business inheritance dispute.
Understanding Business Inheritance
Business inheritance disputes arise when disagreements emerge regarding the ownership, control, or management of a company after the death of a key family member. The transition of a business from one owner to another can be complex, particularly when multiple heirs are involved. These disputes can involve:
- Succession planning issues: Inadequate or absent succession planning can cause confusion regarding the future ownership and management of the business, leading to disputes among heirs regarding their roles, responsibilities, and entitlements.
- Unclear ownership structures: If a business owner does not clearly define the business’s ownership structure through legal documents like buy-sell or shareholder agreements, disputes can erupt over who controls what percentage of the company.
- Unequal treatment of heirs: Disputes may arise when heirs perceive that they have been unfairly treated or inadequately compensated in the inheritance of the business, often leading to resentment and discord among family members.
- Differing interests: Heirs may have divergent interests, goals, and visions for the future direction of the business, which can create tension and hinder decision-making processes.
- Disputes of valuation and asset distribution: Determining the business’s fair market value can be contentious, especially when disagreements exist over the assessment methods and criteria used to value the business and determine the distribution of assets among heirs.
The Importance of Succession Planning
The best way to minimise the risk of business inheritance disputes is through proactive succession planning. This involves:
- Creating a will that explicitly outlines ownership distribution after the owner’s death
- Creating buy-sell agreements that outline the terms under which shares can be bought or sold within the family
- Creating shareholder agreements that define ownership, voting rights, and management roles within the company
Our Sydney, NSW, business and commercial lawyers can help you plan to prevent business inheritance disputes. If your family is already facing such a dispute, contact our contesting a will solicitors as soon as possible so we can provide you with expert legal advice to prevent a disruption in your family’s business.
Ways to Resolve Business Inheritance Disputes
There are several ways to resolve business inheritance or other estate disputes in Sydney, NSW.
These methods are outlined in the Succession Act 2006 and include:
- Informal negotiations
- Mediation or other alternative dispute resolution (ADR) methods
- Court intervention, including family provision claims or other processes for disputing a will
Grounds for Disputing a Will in NSW
You may need to seek intervention from the Supreme Court of NSW to resolve your inheritance dispute by contesting the will of your family member. The grounds for disputing a will in Sydney include:
- Undue influence
- Lack of testamentary capacity
- Fraud
- Inadequate provision for dependents
Get Legal Advice from Szabo & Associates Solicitors
Legal counsel can help you understand your rights and obligations pertaining to your family’s business. Our knowledgeable wills and probate solicitors at Szabo & Associates can provide guidance on relevant laws and regulations and advocate for your interests through negotiation, mediation, or litigation if necessary. Let us help you navigate and resolve your business inheritance dispute by calling us at 02 9281 5088 or completing our contact form.
Why choose Szabo Solicitors
30 years' experience
George Szabo and our Team of Solicitors have more than 30 years of experience with contesting wills in Sydney, NSW and across other States in Australia too.
High success rate
Years of experience and dedication ensure our high success rate in contesting wills cases.
Personal service
Our personalised approach ensures exceptional service tailored to your unique needs and circumstances.
