Florida Prenuptial Agreements for Startup Founders and Equity Owners
Quick Answer
Is my startup equity protected in a Florida divorce?
Only partly, and the gap is where founders get hurt. Equity you owned before the marriage is nonmarital under Fla. Stat. § 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” is marital. A founder works on the company throughout the marriage. If the company is worth almost nothing at the wedding and a great deal after a Series A, most of that increase can be traced to marital effort — and is therefore divisible. A prenuptial agreement is the only reliable way to fix that outcome in advance.
Founders in Miami, Brickell, and Coral Gables increasingly hold their net worth in illiquid equity: a pre-revenue company with a nominal 409A valuation today and a financing round on the horizon. Florida’s default rules were not written with that asset in mind, and they produce results most founders do not expect. Pazos Law Group drafts and reviews prenuptial agreements for founders, early employees, and equity holders across South Florida — in English and Spanish.
The founder’s problem, stated precisely
Three provisions of the equitable distribution statute interact in a way that catches founders off guard:
- § 61.075(6)(b)1. — assets acquired before the marriage are nonmarital. Your pre-marriage cap table position starts out protected.
- § 61.075(6)(a)1.a. — assets acquired during the marriage are marital, individually or jointly. Equity granted, exercised, or purchased after the wedding starts out marital.
- § 61.075(6)(a)1.b. — enhancement in value and appreciation of a nonmarital asset resulting from either spouse’s efforts during the marriage, or from marital funds spent on it, is marital.
That third provision is the one that matters. A founder is not a passive holder. You are the person whose labor during the marriage drives the company’s value. The more successful you are, the larger the marital share of your own company becomes.
Add § 61.075(8): assets acquired by either spouse after the date of marriage that are not specifically established as nonmarital are presumed marital, and the burden is on the person claiming otherwise. In a cap table with grants, refreshes, secondaries, and SAFEs converting across several years, that presumption is a heavy lift to rebut without a written agreement.
Valuation: the pre-Series A trap
Timing is where founders lose the most. Under § 61.075(7), the cut-off for classifying assets as marital is the earliest of a valid separation agreement, a date that agreement sets, or the date the dissolution petition is filed. But the date for valuing them is “the date or dates as the judge determines is just and equitable under the circumstances,” and the statute expressly permits different assets to be valued on different dates.
For a company that is pre-revenue at separation and priced at a materially higher valuation months later, that discretion is enormous. Two defensible valuation dates can produce results that differ by an order of magnitude. A prenup can specify the valuation methodology and date by agreement instead of leaving it to argument.
Since July 1, 2024, § 61.075(6)(a)1.f. also governs how a Florida court values the marital interest in a closely held business. The standard is fair market value — “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.” Goodwill that exists separate and apart from the owner’s continued presence and reputation is enterprise goodwill, a marital asset the court must value; goodwill inseparable from the founder personally is not. That distinction comes from Thompson v. Thompson, 576 So. 2d 267 (Fla. 1991), and is now written into the statute.
What a prenup can settle in advance
Florida adopted the Uniform Premarital Agreement Act at § 61.079. Under § 61.079(4)(a), the parties may contract with respect to the rights and obligations in property, the right to buy, sell, transfer, or otherwise manage property, and the disposition of property on separation or dissolution. They may also establish, modify, waive, or eliminate spousal support. And § 61.075(6)(b)4. expressly recognizes assets excluded from the marital estate “by valid written agreement of the parties.”
For a founder, a well-drafted agreement typically addresses:
- The equity itself — which shares, units, options, SAFEs, or convertible instruments are separate property, including instruments issued after the wedding.
- Appreciation — whether increases in value, including increases driven by your own work, remain separate. This is the provision that answers § 61.075(6)(a)1.b.
- Dilution, refreshes, and secondaries — how later grants and liquidity events are characterized.
- Restructurings — a redomiciliation or corporate “flip” from an offshore holding company into a U.S. entity should not silently re-characterize the asset.
- Valuation method and date — agreed in advance rather than litigated after a priced round.
- Confidentiality — Florida court files are generally public, and cap table detail in a public record is a real commercial concern.
Disclosure is harder when the asset has no price
Under § 61.079(7)(a), a premarital agreement is not enforceable if the party against whom enforcement is sought proves it was not executed voluntarily, or that it was the product of fraud, duress, coercion, or overreaching, or that it was unconscionable when executed and, before execution, that party was not provided a fair and reasonable disclosure of the other’s property and financial obligations, did not voluntarily and expressly waive that disclosure in writing, and did not have (or reasonably could not have had) adequate knowledge of it.
Founders often assume that because the company is “worth nothing right now,” there is little to disclose. That is the most dangerous assumption in this area. If a company carrying a nominal valuation at signing is worth a great deal three years later, the fiancé(e) who waived rights has an obvious argument that disclosure was inadequate. The defensive move is more disclosure, not less: the cap table, the instruments, the financing plans actually contemplated, and the honest statement that value is uncertain and could increase substantially.
Under § 61.079(3), the agreement must be in writing and signed by both parties, and it is enforceable without consideration other than the marriage itself. Notarization is not required by statute. It becomes effective on marriage.
Offshore holding companies and cross-border structures
Many South Florida founders operate through an offshore holding entity with operating subsidiaries abroad, often alongside a U.S. LLC taxed as a pass-through. Nothing in § 61.075(6)(a)1.a. limits marital assets to those located in the United States, so a foreign-held interest can form part of the marital estate. The practical constraints are proof and enforcement rather than characterization — which is why courts often equalize with a monetary award under § 61.075(10), payable in a lump sum or installments with security and interest, rather than trying to reach a foreign entity directly.
If both fiancés hold equity in different ventures, the agreement should be reciprocal and each side should have independent counsel. See also international and cross-border divorce in Florida and dividing a business in a Florida divorce.
What a prenup cannot do
Two limits apply regardless of how the agreement is drafted. Child support is determined under § 61.30 and time-sharing under § 61.13 according to the child’s best interests; parents cannot contract away a child’s right to support, and a court is not bound by an agreement that purports to. And an agreement signed under pressure days before a wedding invites exactly the voluntariness challenge that § 61.079(7) contemplates. Start months ahead, not weeks.
Frequently Asked Questions
Is equity I owned before marriage safe in a Florida divorce?
The equity itself is nonmarital under Fla. Stat. § 61.075(6)(b)1. But under § 61.075(6)(a)1.b., the enhancement in value and appreciation of a nonmarital asset resulting from either party’s efforts during the marriage, or from marital funds spent on it, is marital and divisible. For a founder actively building the company, that appreciation is often the largest number in the case.
What happens to equity granted after we marry?
Assets acquired during the marriage are marital under Fla. Stat. § 61.075(6)(a)1.a., and § 61.075(8) presumes that assets acquired after the date of marriage are marital unless specifically established otherwise, with the burden on the party claiming otherwise. A premarital agreement can define post-marriage grants as separate property by written agreement, which § 61.075(6)(b)4. recognizes.
How is a pre-revenue startup valued in a Florida divorce?
Under Fla. Stat. § 61.075(6)(a)1.f., the standard of value for a closely held business is fair market value, and enterprise goodwill separate from the owner’s continued presence and reputation is a marital asset the court must value. Under § 61.075(7) the judge sets the valuation date as is just and equitable, and different assets may be valued on different dates — which matters enormously around a financing round.
Can a prenup cover a future Series A or a corporate flip?
Fla. Stat. § 61.079(4)(a) permits the parties to contract about their rights in property and the disposition of property on dissolution, so an agreement can address later financing rounds, dilution, secondaries, and a redomiciliation from an offshore entity to a U.S. structure. Drafting should anticipate that the instrument you hold at signing may not be the instrument you hold later.
My company is worth almost nothing today. Do I still need disclosure?
Yes, and arguably more of it. Under Fla. Stat. § 61.079(7)(a), an agreement may be unenforceable where it was unconscionable when executed and the other party was not given fair and reasonable disclosure, did not waive it in writing, and lacked adequate knowledge. A nominal valuation at signing followed by a large increase is precisely the fact pattern that invites that challenge.
Does a Florida prenup have to be notarized?
No. Fla. Stat. § 61.079(3) requires only that the agreement be in writing and signed by both parties, and it is enforceable without consideration other than the marriage itself. Many attorneys still notarize as a best practice to help authenticate signatures.
Related Pages
- Florida Prenuptial Agreement Attorney
- High-Net-Worth Prenuptial Agreements in Florida
- Dividing a Business in a Florida Divorce
- International & Cross-Border Divorce in Florida
- Brickell Prenup & Postnuptial Agreement Attorney
- Florida Prenup FAQ
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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.