Attorney
You’ve probably bought an item of clothing that claims to be “one-size-fits-all” before. You trust that if it fits all, it’s going to fit you. But once you get home you realize that you are not everyone else, and the gloves that looked perfect in their packaging were oddly tight in the fingers. The problem isn’t you, it’s the product and its promise that fell flat.
The same issue exists in New Mexico divorce law. Family laws are supposed to apply the same to everyone, but they are written with a traditional W-2 employee in mind. Regular paychecks. Predictable hours. Typical benefits package.
Business owners, entrepreneurs, start-up investors, and c-level employees are often frustrated to discover that the law does not fit the needs of families with more complex finances.
For example, someone working at an Albuquerque area startup might be “earning” stock options today that won’t vest until years after they get divorced. But that hypothetical value is being built during the marriage, so it must be divided up during divorce.
As a former business owner and divorcee himself, Attorney Bob Matteucci is deeply familiar with the headaches this creates. He puts his lived experience, business sense, and understanding of New Mexico’s family court system to work to find a path forward for people with nontraditional income streams and assets — like stock options.
Not All Assets Are Created Equal
Stock options aren’t like a bank account or a 401(k). They might not be vested yet. They might not be transferable. They might turn out to be worth millions… or nothing at all. But under New Mexico’s community property laws, they still need to be classified, valued, and, perhaps, divided 50/50 before a family court judge will grant you a divorce.
This raises key questions:
- Were the options granted during the marriage, or before?
- Were they earned as compensation for past performance, or as incentive for future work?
- Can they be exercised? And if so, who pays the tax?
Whether you know the answer to these questions off the top of your head or not, Attorney Bob Matteucci can help you assess your situation and craft a solution that takes into account your family’s needs and the impact your divorce will have on the business tied to any stock whose value must be divided up.
Creative Solutions for Complex Finances
It is important to note that it is the value of the stock options that must be divided, not the stock itself. And this is where things get interesting. There’s a lot of horse trading that can happen if both you and your spouse see the stock options as something you want to walk away from the divorce with.
It may be necessary for one spouse to buy out the other’s interest in the stock, just like you would buy out a business partner.
It may also be possible to use them as a bargaining chip if there are other desirable assets causing disagreements, or if some sort of lump-sum or long-term alimony payment would be appropriate.
The key is to craft a division that’s fair, enforceable, and workable post-divorce so you, your spouse, and the business survive the divorce and are able to move forward.
Serving Families with Dignity & Compassion
Don’t let one-size-fits-all divorce laws turn your amicable split into a bitter dispute. If you or your soon-to-be-former spouse have complex or difficult to divide assets like stock options, it is time to call Attorney Bob Matteucci to discuss your case.
Bob’s business background means you won’t have to explain things like vesting to him. And his style of lawyering, which focuses on setting you up for the post-divorce part of your life, means you can expect a resolution that is tailored to fit your needs. Please contact the Matteucci Family Law today to set up a meeting.