tip of the Month.
While "conflict of interest" issues often arise because of divorce, other types of "splits" can involve a dispute among shareholders, LLC members, partners and beneficiaries. These situations may be more complex than a divorce, because they involve more people--some of whom the firm may represent individually while also representing the entity.
Many potential conflict of interest situations are so complex and critical that the best first step before taking action is to consult with legal counsel or a risk adviser for assistance. In the case of a potential or developing conflict of interest, advisers often determine the extent of the conflict through use of the "reasonable person" test (What would a reasonable person think in this situation?).
It may be necessary for the firm to disclose the potential conflicts of interest to all relevant parties. However, disclosing a conflict of...
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