Dividing a Business in a Florida Divorce

By Nadia Pazos, Family Law Attorney, Pazos Law Group · Updated August 2026

A closely held business is often the single largest asset in a Florida divorce — and the hardest to divide, because you cannot cut a medical practice, a construction company, or a family import business in half. Florida law changed here recently: in 2024 the Legislature added Fla. Stat. § 61.075(6)(a)1.f., which for the first time writes the standard of value and the treatment of goodwill directly into the equitable distribution statute. Pazos Law Group handles divorces involving business ownership across Miami-Dade, Broward, and Palm Beach counties, in English and Spanish.

Is the business marital, nonmarital, or both?

Florida is an equitable distribution state, not a community property state. Under § 61.075(1) the court sets aside each spouse’s nonmarital assets and then divides the marital ones, beginning — in the statute’s words — with “the premise that the distribution should be equal, unless there is a justification for an unequal distribution.”

• Founded during the marriage. Marital under § 61.075(6)(a)1.a., even if only one spouse works in it and only one spouse is on the corporate filings.
• Founded before the marriage. The premarital value is nonmarital under § 61.075(6)(b)1. But under § 61.075(6)(a)1.b., “the enhancement in value and appreciation of nonmarital assets resulting from the efforts of either party during the marriage or from the contribution to or expenditure thereon of marital funds” is marital. In a business the owner spouse actively ran throughout the marriage, that enhancement is frequently the larger number.
• Income the business threw off. Under § 61.075(6)(b)3., income derived from a nonmarital asset is nonmarital — unless the income “was treated, used, or relied upon by the parties as a marital asset.” Distributions that funded the family’s lifestyle or were deposited into joint accounts are a common route to a marital characterization.
• Titled jointly. Personal property titled as tenants by the entireties is presumed marital under § 61.075(6)(a)3., and the party claiming otherwise carries the burden of proof.

Also note § 61.075(11): special equity as a separate doctrine is abolished. Claims that used to be pleaded that way must now be brought either as a request for unequal distribution under the § 61.075(1) factors or as an enhancement-in-value claim.

What the 2024 amendment changed

Chapter 2024-237, Laws of Florida, added § 61.075(6)(a)1.f., which lists “the marital interests in a closely held business” as a marital asset and then tells the court how to value it. Three points matter most:

• Fair market value is the standard. The statute defines it as “the price at which property would change hands between a willing and able buyer and a willing and able seller, with neither party under compulsion to buy or sell, and when both parties have reasonable knowledge of the relevant facts.”
• Enterprise goodwill is marital; personal goodwill is not. Under sub-sub-subparagraph (II), “[i]f 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.”
• A non-compete does not automatically defeat enterprise goodwill. Under (III), the court must consider evidence that a covenant not to compete may be required on a sale, “but such evidence alone does not preclude the court from finding enterprise goodwill.” This closed off an argument owner spouses had used to zero out goodwill entirely.

Enterprise goodwill vs. personal goodwill

This distinction usually decides the number, and it did not start with the 2024 statute. In Thompson v. Thompson, 576 So. 2d 267 (Fla. 1991), the Florida Supreme Court held that for goodwill to be a marital asset it must exist separate and apart from the reputation or continued presence of the spouse who owns the practice, and it approved defining goodwill as the value of a practice exceeding its tangible assets — the tendency of clients or patients to return to and recommend the practice irrespective of the individual practitioner’s reputation. Thompson also framed valuation as a two-step process: prove that goodwill exists separate from reputation, then prove its value. The 2024 amendment codifies that framework for closely held businesses generally.

Practically: a dental practice with a recognizable name, a trained staff, a patient list, a leasehold, and systems that would survive the dentist’s departure has enterprise goodwill. A solo consultant whose entire revenue follows her personally has little or none. Most real businesses sit somewhere in between, which is why a credible valuation expert — and effective cross-examination of the other side’s expert — is where these cases are won.

Which date is the business valued on?

Under § 61.075(7), the cut-off for classifying assets as marital is the earliest of a valid separation agreement, a date the agreement sets, or the date the dissolution petition is filed. But the date for valuing assets is “the date or dates as the judge determines is just and equitable under the circumstances,” and the statute expressly allows different assets to be valued as of different dates. For a business whose revenue moved sharply after separation, the valuation date can be worth more than any other single argument in the case.

How the business actually gets divided

Courts rarely order two divorcing spouses to keep co-owning an operating company. Among the § 61.075(1) factors is (f), “[t]he desirability of retaining any asset, including an interest in a business, corporation, or professional practice, intact and free from any claim or interference by the other party.” The usual outcome is that the operating spouse keeps the business and the other spouse is made whole another way:

• Offset against other assets — the non-owner takes a larger share of the home, brokerage accounts, or retirement accounts.
• Buyout over time. Under § 61.075(10) the court may order a monetary payment in a lump sum or in installments over a fixed period, and may require security and a reasonable rate of interest.
• Sale, where there is not enough other property to balance the distribution.

Under § 61.075(2), an equitable distribution cash payment vests when the judgment is awarded and does not terminate on remarriage or death — it is treated as a debt. That is a meaningful difference from alimony.

If the business was used to hide or burn money

Section 61.075(1)(i) makes “[t]he 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” a factor justifying unequal distribution. In business cases this shows up as sudden “consulting” payments, deferred invoicing, inflated payroll to relatives, or personal expenses run through the company. The two-year lookback is why moving early on discovery matters.

Under § 61.075(3), any contested distribution must be supported by written findings identifying nonmarital assets, identifying marital assets with individual valuations of significant assets, and explaining the court’s rationale. A judgment that divides a business without those findings is vulnerable on appeal.

Protecting a business before there is a divorce

The cheapest time to address a business is before or early in the marriage. A Florida prenuptial agreement under § 61.079 can define the company and its appreciation as nonmarital by written agreement — § 61.075(6)(b)4. expressly recognizes assets excluded from the marital estate “by valid written agreement of the parties.” For couples already married, a postnuptial agreement can do similar work, though it is governed by different law. If you own a company and are engaged, this is the highest-leverage conversation you can have.

Frequently Asked Questions

Related Pages

• High-Net-Worth Divorce Attorney in Florida
• Dividing Retirement Accounts & Pensions in a Florida Divorce
• International & Cross-Border Divorce in Florida
• Florida Prenuptial Agreement Attorney
• Florida Marital Asset Division Calculator
• Florida Family Law Statutes

The information on this page is for general informational purposes only and does not constitute legal advice. Outcomes depend on the specific facts and circumstances of each case, and no particular result is guaranteed. Reading or sharing this content, or using this website, 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.