Albuquerque has a strong business community that has been steadily growing for the past 600 years. No, that’s not a typo — this ideal landscape along the Rio Grande River was a center of trade and commerce well before Spanish explorers headed this direction, and that’s not going to change any time soon.
Today, our booming hospitality, technology, and manufacturing sectors are the bedrock industries that support the small businesses and vibrant cultural institutions that thrive here.
Being a part of this diverse business community is a dream come true for many successful entrepreneurs, investors, and business owners. But it also comes at a price. Working for yourself is a high-risk, high-reward scenario that can stress family relationships to the breaking point.
As the former owner of a profitable shoe store that generated over $5,500,000 in annual sales, and a divorcee, Attorney Bob Matteucci understands better than most how family and business disputes can become intertwined. And how difficult it can be to get divorced as a business owner.
Due to this experience, Bob is often asked to assist Albuquerque area business owners who want to get divorced. But his role in these cases is not always the same. Sometimes one party hires him to be their attorney and advocate, other times he serves as a mediator helping both parties find common ground, and in an increasing number of cases he is brought in by the court or the parties as a special master.
What is a Special Master?
A special master is a neutral third party hired to assist the parties in a civil lawsuit as they attempt to come to an agreement, or investigate an issue the court would like more information on as it makes its ruling.
The special master does not advocate for either party like an attorney would do, and he or she does not have the same decision-making powers as the judge in the case. Instead, the special master typically has a set of skills or certain knowledge that the parties’ attorneys or the judge overseeing the case believe it will be helpful to tap into.
A special master’s job duties and powers are dictated by the problem they have been brought in to solve. But generally speaking they have the leeway to do everything from gathering evidence, to interviewing witnesses, hiring experts, and doing things like negotiating the sale of assets on behalf of the parties in the case. The special master’s actions are presumed to be appropriate unless a party involved in the case can prove his or her work is clearly unacceptable.
What Kinds of Disputes Can a Special Master Help a Business Owning Couple Resolve During a Divorce?
When a couple getting divorced has significant business assets, figuring out how to divide or manage them post-divorce can be an insurmountable challenge. A special master like Bob Matteucci, who has business experience and knowledge of New Mexico’s community property laws, may be called in to assist.
Dividing Assets
New Mexico’s community property laws dictate that all assets and debts acquired during the marriage belong equally to both spouses. This rule extends to businesses started or grown during the marriage, meaning that each spouse is entitled to 50% of the business’s value—even if only one spouse was actively involved in the company’s daily operations.
Dividing by two is simple in theory, but a business cannot be split in half without risking its stability and future success. This is where a special master can be invaluable, offering guidance and practical solutions for dividing the value of a business fairly without jeopardizing its operations or earning potential. Some options Bob has negotiated include:
- Buyouts: One spouse buys out the other’s interest in the business, allowing them to retain full ownership.
- Profit Sharing: The business remains intact, and each spouse receives a share of profits for a set period of time.
- Asset Offsets: If other significant marital assets exist, one spouse may retain the business, while the other receives a comparable share in other assets.
Bob’s business background allows him to break down the pros and cons of all the options on the table so the parties can make a decision and move forward.
Business Valuation
One of the first steps toward dividing up a business is determining its value. This is another task that seems like it should be straightforward but is often a point of contention during a divorce. Couples who cannot agree on a valuation can hand that job over to a special master.
A special master with the necessary skills can do the valuation themselves by considering the assets, income, and liabilities, as well as any unique factors relevant to the specific industry. Or he or she can bring in auditors, accountants, and assessors to complete this important task.
Minimizing Business Disruptions
A special master may also step in to stabilize a business during the divorce process. Having a neutral third party at the helm signals to customers and competitors that the business is secure, and backs up this assertion by ensuring that marital disputes do not spill over into the business. Getting a special master involved can also prevent one party from deliberately damaging the business out of spite.
Serving Families with Dignity & Compassion
In divorces where a business is involved, the stakes are high. A business, or business investments, are often a couple’s most valuable financial assets. But they also take on a deep emotional significance when one or both parties view the business as a culmination of their life’s work, or blame the business for their divorce.
Hiring a special master to serve as a neutral third party in these cases can remove some of the tension, and help the parties find an amicable resolution to their disagreements.
Attorney Bob Matteucci is well-suited to serve as a special master in divorces involving businesses. He has developed a reputation for being fair and forthright by leveraging his legal skills, business acumen, and experience as a divorcee to help Albuquerque area business owners navigate the financial and emotional minefield of divorce and move forward with their lives. Please contact Bob today to schedule a meeting.