Attorney
Divorce is rarely a piece of cake, but it can really leave a bad taste in the mouth of restaurant owners. There is simply no easy way to split the value of a restaurant 50/50 without making a mess of things.
That’s where Attorney Bob Matteucci comes in. Bob is an experienced divorce attorney — and former business owner — who advises restaurant owners in the Albuquerque area that are ready to move on from their current relationship.
Splitting the Check Under New Mexico’s Community Property Law
Imagine the worst check splitting experience you’ve ever seen. A huge party, lots of appetizers, a few bottles of wine split among different guests, two people that split an entree, and three people that wanted dessert. As things are wrapping, they tell you they all want separate checks.
Figuring out who’s paying for what is certainly possible, but it is going to take some work. It would be a lot easier if the party had given you a head’s up when they sat down, or were open to dividing the whole check equally among everyone present.
This is just a taste of what it is like to try and split the ownership of a restaurant (or multi-restaurant business) between a divorcing couple (and any other business partners). It’s tricky, but necessary under New Mexico’s divorce laws.
What Options are on the Menu
New Mexico is a community property state, which means that most assets acquired or expanded during the marriage — including your restaurant — are subject to a 50/50 split during divorce. It doesn’t matter if one of you was the head chef while the other handled the books; both spouses have an equal claim to the business unless a pre- or postnuptial agreement states otherwise.
At this point, there are a few different options to consider:
- The easiest thing to do would be sell the restaurant off and split the proceeds in half. But that is rarely the best way to maximize value or ensure you and your former partner are on a solid financial footing post-divorce.
- One of you could also buy out the other. This might involve refinancing or taking on investors. And you would need to consider whether this is even possible if the business is already saddled with debt or owned by people other than you and your soon-to-be-ex-spouse.
- The most popular but complex option is working with Attorney Matteucci to negotiate an agreement where one person takes full ownership of the restaurant while the other walks away with equally valued assets.
What is important to remember in each of these scenarios is that it is not the restaurant itself, but the value it holds that must be divided equally. Your restaurant does not have to be a casualty of the divorce if you and your spouse are willing to be flexible and work together to find a new path forward.
Serving Families with Dignity & Compassion
Whether you’re shutting things down and starting fresh, dividing all your other assets to keep the restaurant intact, or negotiating a buyout, working with a business-minded family law attorney like Bob Matteucci will ensure you’re still cooking up success long after your divorce is finalized. Please contact Bob today to schedule a meeting to discuss your case.