When Dreams and Reality Collide: Finding Middle Ground for the Garcia Family

** Names and identifying details have been altered to maintain client confidentiality. **

The Garcias:

  • Have two children: Elizabeth (11) and Jackson (4).
  • Married 12 years, but separated for one year at the time of mediation.
  • Lived together in an apartment in San Francisco, CA. Never owned a home.
Brad Garcia, 48
  • CEO of a privately-held, VC Backed SaaS Start-Up.
  • Base salary of $175,000 plus a 35% ownership stake in the company worth an estimated $2 million.
  • Wanted to take the company public, but had no timeline for doing so.

Claudia Garcia, 44

  • Nurse at a local hospital, on-call 2x / month in the ER.
  • Base salary of $160,000 with no overtime.
  • Also managed the household and was the primary caregiver for the children.
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Key Benefits:

Flexible parenting framework with milestone review

Step-down equity sharing approach with floor

Shift in focus from past grievances to future possibilities

Please note: While this case study highlights select issues we helped the couple resolve, we assisted them in resolving all aspects of their divorce negotiations.

Brad and Claudia's Challenges:

As a serial entrepreneur, Brad was driven by the allure of the next big breakthrough, inspired by countless success stories in the tech world.

He poured not just his time, but also substantial family resources - over $200,000 into various ventures, convinced that each new startup might be the one to provide the windfall his family deserved.

Meanwhile, Claudia balanced the demanding responsibilities of an emergency room nurse with being the primary caregiver for their two young children.

Her unpredictable shift work and on-call schedule twice monthly created constant logistical challenges, especially during Brad's frequent business trips.

While at first she supported her husband's entrepreneurial spirit, the perpetual sacrifice of immediate stability - including her dream of owning a home - for the promise of future success had worn thin. Their continued apartment living stood as a daily reminder of postponed dreams and diverging priorities.

 

Mapping the disconnect

To help Brad understand the reality of their situation, we suggested a simple but revealing exercise: mapping out their schedules for the next quarter. The results were stark.

Brad's calendar showed him absent for ten out of twelve weeks, with the remaining time consumed by late nights at the office. His physical presence at home had become as rare as a Silicon Valley rainfall.

Claudia's schedule told a different story. Her workdays were structured but demanding, filled with the emotional labor of patient care.

But it was what happened before and after work that painted the full picture: morning rushes to get children ready for school, afternoon pickups, homework supervision, dinner preparation, and bedtime routines.

All this while carrying the emotional burden of explaining to their children why Daddy couldn't make it to another soccer game or dance recital.

 

The cost of dreams

When we delved into the financial aspects, the numbers told their own story.

Over ten years, the couple had invested nearly $250,000 in Brad's various ventures - money that could have secured their family a foothold in the Bay Area's competitive housing market. Instead of building equity in a home, they had poured their savings into Brad's dreams of startup success.

What struck us most was Claudia's unfulfilled wish list: yoga classes she never attended, a book club she had to abandon, and monthly dinners with friends that had dwindled to occasional text messages.

These weren't mere activities; they were lifelines to her identity beyond being a mother and wife - lifelines that had frayed under the weight of her responsibilities.

 

Finding common ground: a path to equitable solutions

While there’s no doubt past events drive a couple to divorce, mediation is a forward-looking process whose primary goal is to negotiate and craft agreements which will govern a couple’s co-parenting and financial relationship for the future.

Shifting a couple’s focus from past grievances to future possibilities is the only way to clear a path to agreement.

With that in mind, we were able to divert Brad and Claudia’s energy from their finances and redirect it to their shared commitment to Elizabeth and Jackson's well-being. The cornerstone of their agreement centered on redefining what active parenting meant for Brad, whose entrepreneurial career demanded flexibility.

Through thoughtful discussion, we developed an innovative timesharing arrangement that balanced Brad's desire for substantial involvement with Claudia's need for predictability.

The solution: Brad would have ten days of parenting time each month, with built-in flexibility to accommodate his variable schedule. Rather than rigid weekly rotations, they agreed to a quarterly planning system that ensured Brad maintained thirty days of quality parenting time over each three-month period.

This adaptive approach allowed them to coordinate their calendars in advance, reducing potential conflicts and ensuring Elizabeth and Jackson enjoyed meaningful time with both parents.

We also negotiated a review milestone at Jackson's entry into first grade, where they could either transition to a more structured 2:1 parenting schedule or extend annually their flexible arrangement based on their family's needs.

Equally nuanced was our approach to Brad's business equity.

The final agreement acknowledged the reality that Claudia had been more than a supportive spouse - she had been an indirect investor in Brad's ventures through their joint financial decisions over the years. We structured a graduated equity sharing arrangement that balanced Brad's entrepreneurial interests with Claudia's contributions to his success.

If his company went public within five years of their divorce, Claudia would receive 25% of Brad's ownership stake's net value, with Brad having the option to fulfill this obligation through stock transfer or cash payment.

The agreement included a thoughtful step-down provision: between years six and eight, Claudia's share would decrease by 5% annually until reaching 10%. This final percentage wasn't arbitrary – even at the company's current valuation, it would provide Claudia with sufficient funds for a home down payment, helping her establish long-term financial stability.

Solutions that work for everyone involved


As a result of our tailored approach, The Garcia Family reaped multiple benefits:

  • Elizabeth and Jackson will enjoy a more balanced and predictable parenting schedule that ensures they maintain strong relationships with both parents and are enriched by each parent's unique strengths and perspectives.
  • Brad can continue building his business ventures, while Claudia maintains her fulfilling hospital career with essential time to recharge. Allowing both of them to realize their career aspirations.
  • The financial framework we developed puts both of them on solid footing, with clear paths toward their individual goals of homeownership and long-term security.

Our mediation approach exemplifies how creative problem-solving can transform seemingly incompatible positions into solutions that serve everyone's interests.

By focusing on flexibility, fairness, and future needs, Brad and Claudia found their path forward – not as adversaries, but as co-parents committed to their children's wellbeing and each other's success.

Equitable Mediation proprietary techniques used:

  • Marital Lifestyle Review & Cost of Living Analysis
  • Post-Marital Budget & Income Analysis
  • Tax Implication Analysis of Property Division
  • Flexible Parenting Plan with Change of Circumstance Planning
  • Property Division “What-if” Scenario Planning
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Significant cost savings


Prior to becoming our clients, Brad and Claudia had individually consulted with attorneys whose retainers were $10,000 each. For a mediation fee of $7,400, they received customized solutions that addressed both their complex financial situation and interpersonal dynamics, while also saving significantly on legal costs.

Ready to take the next step?

When the financial and emotional challenges of divorce feel impossible to deal with, we’re here to help. We'll help you reach an agreement that addresses the needs of you, your spouse, and your family.

So you can move forward with confidence.

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