Attorney
Divorce can feel a lot like stepping into the full force of the New Mexico sun: intense, draining, and potentially damaging. And if you own a business in Albuquerque, the stakes are even higher. Your company isn’t just an asset; it’s your livelihood, your legacy, and the foundation of your whole family’s financial security.
Just like protecting yourself from the scorching summer sun means doing more than just hanging out in the shade—you need to hydrate, smear on some sunblock, and make sure you have a cool place to escape to after being out in the rays—shielding your business during divorce requires a multi-pronged approach.
As a former business owner who has a MBA as well as a law degree, Attorney Bob Matteucci understands better than most the steps that New Mexico business owners should take to prepare themselves, their family, and their business for their post-divorce life.
Understand What’s at Risk
New Mexico is a community property state. This means that any business interest acquired or grown during the marriage will be presumed to be marital property, the value of which may be divided 50/50 during a divorce. This may be true even if your spouse wasn’t involved in running the business, and their name is nowhere on the title to any business assets.
In order to calculate exactly how much of the business (or at least the value of it, since most businesses can’t be sawed in half) your soon-to-be-ex-spouse is going to walk away with, it is critical that you gather evidence showing:
- When the business was started
- How it was funded
- Whether there are any partnership or operating agreements in place
- How profits have been handled and reinvested
Think of this as checking the weather forecast. You need to know what you’re dealing with before you step outside.
Get a Business Valuation Early
As mentioned above, it is typically the value of a business that is divided 50/50, not the actual business itself. In order to do this, you have to know how much the business is worth. Getting a professional business valuation done before any disagreements between you and your ex start to heat up is like putting on heat-resistant materials before the sun hits.
Getting this done early can head off disputes over who should do it and what measures they should use. Plus it gives you the most time possible to structure a buyout or decide what other assets you will willingly give up your claim to.
Separate Personal and Business Finances
If you’ve blurred the lines between personal and business spending, now is the time to clean it up. Commingled funds can make it harder to claim separate ownership because they can change the legal character of an asset.
- Use separate bank accounts
- Keep detailed records
- Avoid paying personal expenses through the business
This step is like slathering on that SPF. It’s necessary to start doing it and keep doing it even if it slows you down because it protects you from greater harm.
Structure Settlements Strategically
Water is what keeps you alive no matter how hot it gets. While cash flow is what keeps your business afloat. Don’t be so quick to end your marriage that you hamstring your business by agreeing to a settlement that slowly starves it off.
Think about how the terms you agree to will work in the real world, not just on paper. Instead of paying a lump sum up front or making punishingly large payments consider:
- Offsetting some of the business’s value with other assets (like retirement accounts or real estate)
- Doing a structured buyout, just like you would if your spouse was a business partner who wanted out
- Offering long-term spousal support payments that spread out the payments over as much time as needed
And these are just a few examples. Attorney Matteucci is known for his ability to craft creative solutions for couples who need to divide complex or highly valuable business assets.
Serving Families With Dignity & Compassion
At Matteucci Family Law, we understand that your business isn’t just another asset, it’s the foundation that must support you and your family’s post-divorce future. Shielding it from the damaging rays of your divorce takes a smart, layered approach, and Attorney Bob Matteucci is ready to help you craft one. Please contact Bob today to schedule a meeting.