Dave Ciambella

Have you identified an “advocate” for your spouse?
October 27, 2008

Protecting the financial security of your spouse is a fundamental aspect of a sound succession plan. This is often accomplished by ensuring there are enough income sources to maintain a desired standard of living which may be provided through business profits, investment income, real estate income, having adequate life insurance or some combination of the above. There is a lot to be said for having financial freedom! However, there are other issues you should be aware of, and one of them is identifying an “advocate” for your spouse to either assist in making business decisions or to possibly serve as a buffer between mom and the kids as an example.

Thousands of business owners, especially those age fifty-five and older, have been the driving force behind a business they started from scratch several years ago with nominal investment capital and a work ethic that would not quit. Many of these traditional families depended upon Dad to bring home the bacon while Mom was responsible for taking care of the children and the home front. Somehow, the dads got off easy on that one (I can personally attest to this as a father of three and a husband who has the utmost respect for my wife fulfilling that role)! In many instances, the husband insulated his wife from the daily stresses of the business and also took responsibility for ensuring the bills were paid. Basically, Mom was out of the loop relative to business operations and personal finances which, on the surface, appears to be an asset. However, how well equipped is Mom when the unexpected happens such as Dad’s incapacitation and or premature demise? WOW!!! Recently, a new client shared with me that he never really thought of it from that angle. I have witnessed dozens of families who have fallen prey to this exact situation. Frankly, it is quite scary and extremely uncomfortable for widows and those spouses who are coping with the terminal illness of their spouse.

Wouldn’t it be comforting for a spouse to have a trusted, knowledgeable “advocate” who could help answer questions, assist in managing finances, assist in managing the operating business, and could serve as a potential buffer in times when a child may pull on Mom’s heart strings to invest in a new business venture? I submit to you it would! If you disagree with me, just ask a person who has been thrust into a position as described above with little-to-no preparation about operating/managing a business, negotiating with lenders and or managing a multi-million dollar portfolio. Do you have someone who could serve as an “advocate” for your spouse? Are you proactively disseminating information and educating your spouse about the business and personal finances? There is no better time than now!

Posted by Dave Ciambella on October 27, 2008 | Comments (0)