How Is a Business Divided in a Florida Divorce?

By Nadia Pazos, Family Law Attorney, Pazos Law Group · May 2026  ·  ← All blog posts

Which Florida Statutes Govern Equitable Distribution? (§ 61.075, as amended by ch. 2024-237)

Property division runs through Fla. Stat. § 61.075(1), which requires the court to begin from an equal split. The 2024 amendment (ch. 2024-237, effective 1 July 2024) added the closely-held-business valuation rules. Every proposition below is tied to the pinpoint subsection that supports it. Links go to the official text published by the Florida Legislature.

• § 61.075(1) — requires the court to set apart each spouse’s nonmarital property and to begin distribution from the premise that it should be equal, absent justification for an unequal split.
• § 61.075(1)(a)–(j) — lists the factors that can justify an unequal distribution, including contributions, economic circumstances, duration, career interruption, and the desirability of keeping a business intact.
• § 61.075(1)(i) — makes intentional dissipation, waste, depletion, or destruction of marital assets a factor when it occurs after filing or within 2 years before filing.
• § 61.075(3) — requires specific written findings identifying nonmarital assets, valuing significant marital assets, and assigning liabilities in any contested case without a stipulation.
• § 61.075(5) — permits an interim partial distribution on a sworn motion showing extraordinary circumstances.
• § 61.075(6)(a)1.b — makes the enhancement in value and appreciation of a nonmarital asset marital when it results from either party’s marital effort or the expenditure of marital funds.
• § 61.075(6)(a)1.c — supplies the coverture-fraction formula for the marital share of passive appreciation where marital funds paid down a mortgage on nonmarital real property.
• § 61.075(6)(a)1.e — makes all vested and nonvested retirement, pension, profit-sharing, annuity, deferred compensation, and insurance benefits accrued during the marriage marital assets.
• § 61.075(6)(a)1.f — sets fair market value as the standard of value for a closely held business and makes enterprise goodwill a marital asset the court must value.
• § 61.075(6)(a)2. — presumes real property held as tenants by the entireties is marital, whenever acquired.
• § 61.075(6)(b) — defines nonmarital assets: premarital property, noninterspousal gifts and inheritances, income from nonmarital assets not treated as marital, and assets excluded by valid written agreement.
• § 61.075(7) — fixes the cut-off date for classification as the earlier of a valid separation agreement or the filing of the petition, while leaving the valuation date to the judge.
• § 61.075(8) — presumes assets acquired and liabilities incurred after the date of marriage are marital, rebuttable by a showing to the contrary.
• § 61.075(9) — permits equitable distribution without regard to alimony, with alimony considered afterward.
• § 61.075(11) — abolishes special equity, which must now be pleaded as unequal distribution or as enhancement in value.
• § 61.076 — governs the distribution of retirement, pension, profit-sharing, annuity, and deferred compensation plans.
• § 61.16 — governs attorney’s and expert fee awards, including forensic accounting costs.
• § 61.08(1)(a) — governs the alimony forms considered after the estate is divided.
• Thompson v. Thompson, 576 So. 2d 267 (Fla. 1991) — the Florida Supreme Court decision on enterprise goodwill in a professional practice.
• Kaaa v. Kaaa, 58 So. 3d 867 (Fla. 2010) — the Florida Supreme Court decision on the marital share of passive appreciation, now codified at § 61.075(6)(a)1.c.
• § 61.021 — requires 6 months of Florida residency before the petition that fixes the classification cut-off date.
• § 61.052 — supplies the ground — an irretrievably broken marriage — for the dissolution in which the estate is divided.
• § 61.19 — bars entry of the final judgment dividing the estate until at least 20 days after the petition is filed, absent a showing that the delay would cause injustice.
• § 61.071 — authorizes temporary support and suit money while valuation and financial discovery proceed.
• § 61.30(2) — supplies the net income definitions applied when a divided asset produces income.
• § 61.14 — equitable distribution is final once entered, while support obligations remain modifiable under this section.
• § 44.102(2)(c) — refers parenting disputes to family mediation, the forum in which most property settlements are also negotiated.

Source: Florida Legislature, 2025 Florida Statutes. Fla. Stat. ch. 61 Fla. Stat. ch. 61

“in distributing the marital assets and liabilities between the parties, the court must begin with the premise that the distribution should be equal, unless there is a justification for an unequal distribution based on all relevant factors” — Fla. Stat. § 61.075(1)

“If there is goodwill separate and distinct from the continued presence and reputation of the owner spouse, it is considered enterprise goodwill, which is a marital asset that must be valued by the court.” — Fla. Stat. § 61.075(6)(a)1.f

“The cut-off date for determining assets and liabilities to be identified or classified as marital assets and liabilities is the earliest of the date the parties enter into a valid separation agreement, such other date as may be expressly established by such agreement, or the date of the filing of a petition for dissolution of marriage.” — Fla. Stat. § 61.075(7)

“The intentional dissipation, waste, depletion, or destruction of marital assets after the filing of the petition or within 2 years prior to the filing of the petition.” — Fla. Stat. § 61.075(1)(i)

Answers to the Questions the Statute Actually Decides

Does Florida split everything 50/50 under § 61.075(1)?

Not automatically. The statute requires the court to begin from the premise of an equal distribution, then permits an unequal split where the factors in paragraphs (a) through (j) justify it. Nonmarital property is set apart first and is not divided at all.

What date fixes whether an asset is marital under § 61.075(7)?

Classification is fixed at the earliest of a valid separation agreement, a date the agreement expressly sets, or the filing of the petition. Valuation is a separate question — the same subsection lets the judge pick whatever valuation date is just and equitable, and different assets may be valued on different dates.

Is business goodwill divisible in a Florida divorce?

Enterprise goodwill is. § 61.075(6)(a)1.f, added by ch. 2024-237 effective 1 July 2024, makes goodwill that exists separate and distinct from the owner spouse’s continued presence and reputation a marital asset the court must value. The statute uses the term “enterprise goodwill”; the phrase “personal goodwill” appears nowhere in it.

What happens if a spouse wastes or hides marital assets?

§ 61.075(1)(i) makes intentional dissipation, waste, depletion, or destruction of marital assets a statutory factor supporting an unequal distribution, and it reaches conduct within the 2 years before the petition was filed, not just conduct after filing.

Statutory authority checked against the 2025 Florida Statutes on 6 August 2026.

A business is often the largest and most disputed marital asset in a divorce. Valuation methodology, the marital-vs-non-marital line, and structuring options that keep the business intact all matter.

For business owners going through a divorce, the company is often more than just an asset on a balance sheet. It may be a livelihood, a legacy, and the largest single item subject to division. Florida divorces involving businesses raise a distinct set of legal, financial, and strategic questions.

Is the Business Marital Property?

The threshold question is whether the business — or some portion of it — is marital and therefore subject to equitable distribution under Fla. Stat. § 61.075.

The general rules:

• A business started during the marriage with marital effort or marital funds is generally marital property.
• A business started before the marriage is generally non-marital, but appreciation during the marriage attributable to marital labor or marital funds may be marital.
• A business received as a gift or inheritance is generally non-marital, with the same caveat about active appreciation.
• A business funded with non-marital assets but operated with both spouses’ marital effort can have a complicated mixed character.

The distinction between active and passive appreciation is critical. Active appreciation — growth driven by the labor of the spouse-owner or by marital funds — is generally marital. Passive appreciation — growth driven by external market forces independent of marital effort — remains non-marital. Cases involving closely held businesses frequently turn on this distinction.

Business Valuation Methods

Once it is determined that the business is marital (or has a marital component), the next question is what it is worth. Three valuation methods are commonly used, often in combination, by forensic accountants and accredited business valuators:

Income Approach

The income approach values the business based on the present value of its expected future earnings, often through a discounted cash flow analysis. It is most appropriate for established, profitable businesses with reasonably predictable earnings. Disagreements among experts usually focus on the earnings projections, the appropriate discount rate, and adjustments for owner compensation and personal expenses.

Market Approach

The market approach values the business by comparison to recent sales of comparable businesses. It is most useful when reliable comparable transaction data exists. Adjustments are made for differences in size, profitability, growth rate, and industry conditions.

Asset Approach

The asset approach values the business based on the fair market value of its underlying assets minus liabilities. It is often used for asset-heavy businesses, holding companies, and businesses with limited earnings.

Personal vs. Enterprise Goodwill

One of the most contested issues in Florida business valuations is the distinction between personal goodwill and enterprise goodwill:

• Enterprise goodwill belongs to the business itself — its brand, customer relationships, location, systems, and other intangibles that would survive without the owner. Enterprise goodwill is generally a marital asset.
• Personal goodwill belongs to the individual owner — their reputation, professional relationships, and skills. Florida courts have generally held that personal goodwill is not a marital asset, particularly in professional practices.

The valuation expert must allocate goodwill between these categories. The split can dramatically change the marital value of a business, particularly for professional practices like law firms, medical practices, and consultancies.

Structuring the Division

Florida courts generally do not order spouses to remain co-owners of a business after divorce. The goal is a clean break. The practical options include:

1. Buyout

The owner-spouse buys out the other spouse’s share of the marital value of the business. The buyout may be paid in cash, through a promissory note over time, or through an offset against other marital assets. Trading the business for the marital home or retirement accounts is common.

2. Sale

If neither spouse can afford the buyout, or if neither wants to continue the business, the parties (or the court) may order the business sold and the proceeds divided. Sale of a closely held business takes time and often produces less than the valuation would suggest.

3. Continued Joint Ownership

Rare, but possible by agreement — usually with a clear governance structure, defined exit, and acknowledgment that the parties no longer rely on each other operationally.

Protecting the Business During the Divorce

Several practical concerns arise while the divorce is pending:

• Status quo orders. Florida courts often enter orders preserving the financial status quo, restricting transfers and dissipation of assets.
• Discovery into the business. The non-owner spouse will require extensive financial disclosure — tax returns, financial statements, bank records, contracts. Privileged or proprietary information requires protective orders.
• Subpoenas to third parties. Customers, vendors, accountants, and bankers may receive subpoenas. Disclosure of pending divorce can affect business relationships and warrants careful planning.
• Tax implications of buyouts. Most transfers between spouses incident to divorce are tax-free under IRC § 1041, but careless structuring can create unexpected tax events.

Prevention: Prenuptial and Postnuptial Agreements

For business owners, a properly drafted prenuptial or postnuptial agreement is often the most effective tool for protecting a business in the event of divorce. Such agreements can:

• Classify the business as non-marital property.
• Define how active appreciation is treated.
• Specify a valuation method and date in the event of divorce.
• Limit or waive claims against the business.

For these agreements to be enforceable in Florida under Fla. Stat. § 61.079, they must meet specific requirements — including written form, voluntary execution, and fair financial disclosure.

The Bottom Line

A business in a Florida divorce raises layered questions: What part of it is marital? What is its value? Who keeps it? How is the other spouse compensated? And how is the business itself protected during the divorce? These questions reward early, careful planning — ideally with both family law and business counsel coordinating from the start.

Frequently Asked Questions

Related Reading

• High-Net-Worth Divorce in Florida — Complete Guide
• Forensic Accountants in Florida Divorce
• Hidden Assets in a Florida Divorce
• Florida Family Law Glossary — 32+ Plain-English Definitions
• Who Gets the Marital Home in a Florida Divorce?
• How Much Does a Divorce Cost in Florida in 2026?
• Dividing a Business in a Florida Divorce — the full statutory guide

Get Help in Your City

Pazos Law Group represents clients throughout South Florida:

• Coral Gables Divorce Attorney
• Doral Divorce Attorney
• Brickell Divorce Attorney

The information on this page is for general informational purposes only and does not constitute legal advice. Reading or sharing this content does not create an attorney-client relationship with Pazos Law Group. Florida law and the application of statutes change over time; please consult a licensed Florida attorney about your specific situation.