Kelly & Jason’s Challenges:
Kelly and Jason faced the difficult task of untangling both their marriage and their business partnership. Jason's father had built the printing company from the ground up, eventually passing it to the couple who successfully expanded its operations.
However, following issues of infidelity, their decision to divorce created ripple effects throughout their personal and professional lives. The strain of their separation began impacting their business performance, culminating in the loss of a major client that represented 15% of their company's gross revenue.
Both Kelly and Jason acknowledged that their inability to separate personal tensions from professional obligations was undermining their business's stability.
Their years of success had led to substantial assets, including a Tribeca loft condominium, a vacation home in the Catskills, and a commercial building in lower Manhattan housing their printing company. However, these assets presented complex financial entanglements.
The office building had been purchased using a home equity loan against their Tribeca condo, with a balloon payment looming in two years. Kelly had deep emotional ties to the condo and strongly opposed selling it, creating a pressing decision about which property to sell to meet their financial obligations.
The Catskills vacation home presented another emotional challenge. Both Kelly and Jason cherished the property, which held years of family memories, but neither could agree on terms for one party to buy out the other's interest.
Looking ahead, their visions for the future diverged significantly.
Kelly shared her desire to retire to Boston in two years, when her youngest daughter Olivia began boarding school at Groton. Conversely, she also expressed willingness to remain an active partner in the business. Her complicated relationship with Jason was clouding her ability to make a clear decision.
Jason, feeling the weight of his family's legacy, wanted to continue running the business indefinitely. However, he harbored serious concerns about maintaining the company's success without Kelly's partnership, as they had built their current level of achievement together.
From conflict to cooperation: a divorce coach's impact
Kelly and Jason Reed faced a common challenge in divorce mediation: fundamentally different communication styles. Jason approached discussions analytically, focusing on facts and figures, while Kelly processed information through an emotional lens. This disconnect initially created significant barriers to productive dialogue.
Recognizing the need for specialized support, we introduced them to our divorce coach, Cheryl, who worked with each spouse individually. Through targeted coaching, Cheryl helped them develop tools to better interpret each other's perspectives and communication styles, reducing defensive reactions and building mutual understanding.
Cheryl's practical approach included helping them understand the financial wisdom of mediation versus litigation, particularly how legal fees could be redirected to their shared priority: their children's education. She also provided essential strategies for managing tensions, which was especially crucial given their ongoing connections as parents and professional colleagues.
The transformation was remarkable.
After coaching, Kelly and Jason approached their negotiations with renewed perspective, working together as partners rather than opponents. Understanding what was truly at stake—both personally and professionally—they set aside their differences and with our help, were able to focus on crafting mutually beneficial solutions.
Planning for an uncertain future
The Reeds began their divorce just as the pandemic was winding down, and faced significant uncertainties about Manhattan's commercial real estate market and their shared business future.
To navigate these uncertainties, we developed adaptable scenarios using our proprietary “change in circumstance scenario planning” techniques that allowed certain key decisions to be made post-divorce within carefully structured parameters as follows:
- We helped the Reeds establish a framework tied to their upcoming balloon payment deadline. We negotiated an agreement that stated if the building's value increased to 109% of the purchase price, they would refinance the mortgage and maintain ownership. However, if the value reached or exceeded 110%, they would sell the property and retire.
- For their primary residence, we crafted a two-year cohabitation agreement. At the end of this period, they would obtain an appraisal and negotiate a potential buyout based on the current market value. If they couldn't reach an agreement, the property would be listed on the open market, with both parties retaining the right to bid.
- We developed a detailed co-ownership arrangement for their vacation home. Dividing the twenty most desirable weeks annually between individual use and shared family time. We included a custom framework for negotiating additional dates, including an alternating preference system to resolve scheduling conflicts. This arrangement would continue until their youngest child's high school graduation, after which they could pursue a buyout or market sale.
They agreed to co-own until their youngest child graduated high school, after which they could buy each other out or sell on the open market.
