Divorce?

[Julianne Lowman]

At times, when you think you've covered all of your bases, a new dilemma crops up.

Note to self: Don't EVER think you've got all your bases covered.

What happens when you start a commission of a spouse as a gift from the other, then they decided to split up? I have a clause in my contract that says that the 50% deposit is non-refundable, but I've never had to enforce it. I'm afraid that keeping the deposit might hurt future prospects because these people are quite influential in our small community. On the other hand, I'm assuming the couple was having difficulties before the spouse signed the contract with me, therefore knowing the risks involved.

Suggestions?

[Stanka Kordic]

Hello Julianne,

What an awkward situation! My thoughts would be to see where it goes. If the client signed off on your terms, they will most likely honor that. If they quibble, there may be room for negotiation. I don't think you should fork over the whole 50%.

Maybe the wife would like to keep it herself...and who knows..love the idea that her soon to be ex thought of it (reconciliation??)

Regards,

Stanka

[Tom Edgerton]

This is tricky, especially since the community isn't that large, and our business runs on word of mouth.

While I haven't faced this (yet), my instincts tell me to try and assess how far into the project you are, and negotiate a kill fee based on actual work done, not just the arbitrary deposit percentage. For example, if you're a third of the way in, tell them you need 33% to cover work to date. That way, you reimburse them a portion of the deposit and look like a good sport, but you don't lose everything you have in it and wind up with nothing, to Stanka's point.

Something like, "While I don't want to profit from your situation, I feel I need at least a portion of the deposit to cover my work to date; how about __% instead of 50%?" (In a negotiation, the person who says a tangible number first defines the parameters of the discussion.)

Anyone?