Attorney
The people who built Chaco Culture didn’t leave any detailed written records behind. Yet we know a great deal about the lifestyle and culture of the people who lived in this area before us based on the oral history passed down by their descendants and information archaeologists have gleaned from pottery shards, tree rings, and crumbling walls. The bits and pieces that survive may be incomplete, but they still tell a rich story.
The same concepts apply when a high-asset couple is getting divorced and it is time to divide the marital estate 50/50. Each spouse has a vague recollection of where the money used to make different investments or grow the business came from, but the written record is lacking. The book-keeping has always been good enough to satisfy the IRS, but it’s clear business and personal funds were mixed at certain points.
These gaps in the written record suddenly matter as each spouse wants to go their separate way.
Why the Record Has Gaps
Most incomplete records aren’t the result of foul play. They’re what’s left over from running a business while living your life. The owner pays the family phone bill from the business card. One bookkeeper left, and the replacement didn’t keep track of things exactly the same way. A restaurant or contractor handles a lot of cash, while a medical practice’s receivables sit in a billing system nobody has examined closely.
None of this is unusual, and none of it is a sign of bad faith. But all of it affects what the business appears to be worth and how assets can be divided at divorce.
The First Dig: Mandatory Disclosures
Under New Mexico’s family court rules, both spouses must trade financial disclosure statements within 45 days of service of the divorce petition, covering income, assets, and debts. For a business owner, that usually means tax returns, financial records, and the information that back them up must be exchanged as well.
If it is clear some information is missing after the preliminary documents have been exchanged, formal discovery can fill the gaps. Document requests, interrogatories, and subpoenas (if necessary) find the missing evidence.
Bringing in the Specialists
Archaeologists call in tree-ring specialists to date old wooden beams. In divorce, the specialists are forensic accountants and business valuators, and each spouse typically hires their own.
Knowing when to bring an expert in matters. So does knowing how to direct their work. Bob Matteucci ran his own small business and went through the divorce process while in that role (an experience that led him to law school). He also holds an MBA from Tulane. That background lets him scope an expert’s assignment so you aren’t paying for analysis you don’t need.
It also lets him read a valuation report critically, whether it came from your expert or your spouse’s. When two reports land on different numbers, the gap usually comes down to a few assumptions. How much cash income is real? Is the owner’s salary at market rate? Which personal expenses should be added back? Bob can find those assumptions and test them.
When the Gaps Aren’t Accidental
Occasionally the gaps in a couple’s financial records are deliberate: cash skimmed, revenue deferred until after the divorce, assets moved to a relative. When the evidence points to concealment, Bob is ready to hold the other side’s feet to the fire.
Serving Families with Dignity & Compassion
At Chaco, careful work took fragments and turned them into a story. In your divorce, the same deliberate combing through details turns an incomplete record into a settlement agreement that lets the business and your family move forward. Bob and the rest of the Matteucci Family Law team are ready to help you put the pieces together. Contact the firm today to set up a meeting.