Florida is an equitable distribution state. Section 61.075, Florida Statutes, governs the division of marital assets and liabilities, and a business owned by either spouse is part of that analysis. The analysis turns on three questions: when the business was started, how it was grown during the marriage, and what it is worth today.
If the business existed before the marriage, the portion of value attributable to growth during the marriage is generally marital. A business started during the marriage is generally treated as marital property in its entirety, subject to characterization analysis. Section 61.075(6), Florida Statutes, governs the treatment of enhancements in value of non-marital property attributable to marital labor or marital funds.
The business must be valued, usually by a forensic accountant or certified business valuation expert. The valuation is the technical center of the case. In practice, the owning spouse often retains the business by offsetting the other spouse’s marital share through cash, other marital assets, or a structured payout.
Trades businesses, closely held companies, and professional practices each present specific valuation challenges. The technical points — enterprise versus personal goodwill, owner compensation normalization, minority discounts — are where the analysis is decided.
Allyson Hughes — Board Certified Marital and Family Law, AAML Fellow (approximately 100 Florida attorneys), Past Chair of the Family Law Section of The Florida Bar.
