Attorney
Whether you opened your business five years ago, or you’re the fourth generation running it, you know it’s bigger than you are. It’s your livelihood, your legacy, and your link to customers, clients, co-workers, and the community you call home.
So learning that it may be destroyed by your divorce is a real gut punch. As someone who has been in your position, and was inspired to start a second career as a lawyer because of what happened to his family’s business, Attorney Bob Matteucci has your back.
With an MBA, a JD, and years of experience, Bob is well-equipped to help you navigate New Mexico’s divorce law and the impact it will have on your business.
The Business Is Often Community Property—Even If You Built It
New Mexico is a community property state. In plain terms, that means businesses started or grown during the marriage are presumed to belong to both spouses. At divorce, the value of any and all jointly owned property must be divided 50/50.
This is true no matter whose name is on the paperwork. It does not matter that the unnamed spouse rarely stepped foot on company property. And the fact that the business may have been in operation for years (even generations!) before the marriage occurred will be met with a shrug.
The law is clear: the value of all jointly owned assets must be divided equally at divorce.
Sell, Buy Out, or Divide and Conquer? The Main Paths Forward
Generally speaking, you can’t cut a business in half. That’s one of the reasons why the law says the value of assets must be divided, not the assets themselves.
That distinction gives you a bit of wiggle room when you head to the negotiation table in anticipation of divorce. But the path forward is still relatively narrow, with three main options available:
1. Selling the Business
In some cases, selling the business is the only realistic option. It’s a clean break, and it can give both you and your soon-to-be-former partner the liquidity you need to move forward.
However, selling out can leave a lot of money on the table if the business will generate more income if you keep running it than it ever would from selling it.
2. A Buyout
For owners who want continuity and stability, or who are emotionally invested in the business’s success, a buyout can be a good option. This works just like any other business buyout where one partner pays the other to give up their interest in the business.
Buyouts can be structured creatively, with the spouse not interested in continued business ownership walking away with a mixture of cash, other marital assets, or even long-term alimony payments, so long as the overall division of assets remains equal.
Crafting these deals is where Bob Matteucci’s business acumen really shines through. He’s not afraid to wade into the nitty-gritty financial details to help find a way to keep the business afloat.
3. Continued Co-Ownership
Occasionally, divorcing spouses continue owning a business together post-divorce. This requires extraordinary trust, clear operating agreements, and aligned goals. For most couples, especially those focused on moving on with their separate lives, this option is not a good one.
Serving Families with Dignity & Compassion
For many business owners in the Albuquerque area, the hardest part of getting divorced isn’t accepting the fact that their marriage is ending. It’s dealing with the reality that the end of their marriage puts their business — and everything it means to them — at risk.
Attorney Bob Matteucci helps business owners, professionals, and entrepreneurs address the multifaceted challenges divorce brings head on. He knows selling everything off is not always an acceptable option, so he works hard to identify other paths forward. Please contact Bob today to set up a meeting and discuss your case.