If you had told a young Bob Matteucci that he was destined to become a family law attorney, he would have laughed. Law was the furthest thing from his mind as he prepared to become the fourth generation to run his family’s thriving retail shoe business.
Bob spent untold hours learning the business, and even got an MBA degree from Tulane. Then he got divorced. The financial and emotional toll of divorce pushed Bob in a new direction: to law school.
Since graduating from the University of New Mexico, Attorney Bob Matteucci has dedicated himself to becoming the sort of lawyer he and his family needed — one who understands both business and divorce.
Today, there is no other lawyer in the Albuquerque area who appreciates how closely the welfare of a business and the family who run it are intertwined, and how to protect the needs of both during a divorce.
Why Family Businesses are Threatened by Divorce
Many family business owners do not realize that their livelihoods are on the line when they file for divorce. And even fewer understand the impact one couple’s marital strife can have on an entire family tree.
But New Mexico’s community property laws are clear. All property that is acquired, created, or sees an increase in value during a marriage is presumed to be owned by both spouses. At divorce, the value of all this jointly owned property must be divided 50/50.
For business owners, this means their spouse may be entitled to a portion of the business, even if he or she was not directly involved in its operations. This is true even if the business was founded years ago, and is owned by many family members (and their spouses).
Even if the divorce is amicable, it is not easy — financially or emotionally — to essentially pay off someone who married into your family, may not have been involved with the business at all, potentially caused your loved ones heartache, and now appears to be profiting from the disruption they caused.
It is situations like this where having Attorney Matteucci on your side can make a world of difference. He’s been in your shoes (pun intended) and is ready to help you and your family find a path forward.
What’s at Risk When the Owner of a Family Business Gets Divorced?
Figuring out how to ensure both partners walk away from the marriage with 50% of the value of their marital assets is often the biggest challenge in any New Mexico divorce involving a family business. But it is not the only one. When family business owners get divorced they also risk:
- Other Family Members’ Fortunes — As the name implies, family businesses are often owned by an entire family. Extended family members are often shocked and upset to discover that the marital woes of one couple could take down the whole enterprise. This adds a layer of complexity that many divorce attorneys are ill-equipped to handle.
- Future Financial Security — The last thing a business owner should want is a quickie divorce. Unfortunately, many family law attorneys in the Albuquerque area do not fully appreciate what they are asking people to sacrifice in the name of speed, so that is all they offer. Attorney Bob Matteucci understands that thinking about the long-term impact of every aspect of divorce is important, particularly when the welfare of an entire family is dependent on the continued success of a business that will otherwise be destroyed in the name of efficiency.
- Ongoing Operations — The toll a divorce takes on a family business is not just financial. Spending time and energy on the divorce means shifting your focus away from day to to day operations and long-range plans for business growth. Taking proactive steps to ensure management of the business is not interrupted is something Attorney Bob Matteucci can assist you with.
- Employee Confidence — A couple’s friends will often pick sides during a divorce, and employees may feel like they need to do the same if they have worked closely with both you and your soon-to-be-ex spouse. Employees may also question whether the business has solid leadership during the divorce or a future post-divorce and choose to leave. Addressing this issue head-on can prevent many problems from arising.
- Competitive Advantage — If your spouse was actively involved in the business — whether as a partner, employee, or even an advisor — they likely have access to sensitive information about your operations, finances, and clientele. Bob can help you protect your business with non-compete and confidentiality agreements tailored to your unique situation.
- Reputation and Good-Will — Nothing can sink a business faster than losing the support of customers, clients, or the other businesses in your supply chain. If an amicable split is impossible, and your personal struggles become public fodder, you may tarnish your business’s reputation and lose the good-will you have worked so hard to build. Incorporating a confidentiality agreement and nondisparagement clause into your divorce process can protect critical intangible assets.
Working with an attorney like Bob, who can navigate all of these issues with you, is key. There is no other attorney in the Albuquerque area who better understands the challenges you face than Attorney Matteucci.
Serving Families with Dignity & Compassion
In New Mexico, where community property laws govern the division of marital assets, family-owned businesses can be pushed to the brink of collapse by trouble in one branch of the family tree. This is a surprising and painful revelation that many multi-generation enterprises in the Albuquerque area have not been able to survive.
Too often there is a push to shut everything down, sell everything off, and simply divide up the proceeds. But that is not the only or best way to tackle these cases when a whole family’s welfare is at stake. If anyone knows how important it is to identify and divide up the value of marital assets without destroying the underlying business, and how to deal with the other issues that pop up when a business is struggling, it’s Attorney Bob Matteucci.
Thanks to his first-hand experience with the challenges family-owned businesses face during a divorce, Attorney Bob Matteucci is ready to help you and your soon-to-be-former spouse navigate your separation while minimizing the impact it has on your business, your extended family, and your post-divorce life. Contact the Matteucci Family Law Firm today to schedule a meeting.