Attorney
It is not uncommon for businesses in the Albuquerque area to have silent partners. These people have an ownership interest in the business, and are invested in its success, but they don’t participate in day-to-day operations.
What some business owners don’t realize is that they may have several silent partners they don’t realize exist. People whose names are absent from every formation document, financial statement, and company directory. People whose interests in the business are only revealed when one of the known partners gets divorced.
As a former business owner who was inspired to go to law school after getting divorced, Attorney Bob Matteucci understands better than most how completely a business can be shaken by divorce. And just how quickly one business partner’s marital woes can ripple through an entire company.
Community Property and Business Ownership
This means even if your spouse has never attended a board meeting, signed a contract, or stepped foot in your office, the law may say that they jointly own your business.
During a divorce, the value of all marital property must be divided 50/50. This includes business interests.
The Impact on Your Partners
In closely held companies — think medical practices, dental groups, veterinary clinics, professional firms, family businesses — when one partner divorces, everyone feels it.
A spouse can’t suddenly become an operational owner just because they file for divorce. But “buying them out,” just like you would any partner who wanted to exit the business, can still cause problems.
- Their stake in a business is often the most valuable asset a couple owns. This makes it difficult to strike a 50/50 split by giving the spouse not involved with the business other assets.
- The business may not have liquidity to fund a buyout.
- The operating agreement may not contemplate a divorce.
- The partners may be unaware that each spouse is a hidden silent partner.
- Assessing the value of the business so that one partner’s divorce can proceed can strain internal relationships and distract from operations.
- There is always a risk that the divorce will necessitate the disclosure of sensitive financial information that hurts the business.
- News or the divorce or the uncertainty it causes can destabilize a business or tarnish its reputation.
Before things spiral out of control, it is time to bring in an experienced attorney like Bob Matteucci. Thanks to his business background and head for numbers, he has helped many couples and companies in the Albuquerque area navigate this challenging process. His goal is not only to find a way to make that 50/50 split under New Mexico’s community property framework, it is to preserve the long-term viability of the business.
Serving Families With Dignity & Compassion
Your spouse may be a hidden silent partner under New Mexico’s community property law, but that doesn’t mean your business partners need to be blindsided by your divorce.
When handled correctly, divorce does not have to destabilize the company you worked years to build, or harm your business partners. Bob and the rest of the Matteucci Family Law team are ready to help you create a plan that protects your family, your partners, and the business you’ve built so you can all move forward. Please contact Matteucci Family Law today to set up a consultation.