Florida Business Owner Divorce Lawyer

Generally, a business you owned before the marriage is your nonmarital property (section 61.075(6)(b)). But if it grew in value during the marriage because of your work, your spouse's work, or marital money put into it, that growth can be a marital asset (section 61.075(6)(a)1.b). Growth caused only by outside forces, such as a rising market, generally remains separate. Telling the two apart usually takes financial records from the date of the marriage forward and a careful valuation. We can review how your business grew in a free consultation.

The standard is fair market value: what a willing and informed buyer would pay a willing and informed seller, neither under pressure to act (section 61.075(6)(a)1.f). Valuation professionals commonly use three approaches. The income approach looks at the earnings or cash flow the company can be expected to produce. The market approach compares sales of similar businesses. The asset approach subtracts what the company owes from what it owns. Each side can challenge the other's methods and assumptions. Ask us about the valuation questions in your case.

Enhanced value is the increase in a separate asset's worth during the marriage. It is marital when it comes from either spouse's efforts during the marriage, or from marital funds or assets put into the asset (section 61.075(6)(a)1.b). For a business, that could mean years of the owner's full-time work, a spouse working in it without pay, or household savings used to cover payroll. A spouse's share of a marital enhancement is usually paid through the overall division of assets, not as an ownership interest. We can look at your company's history with you.

Not necessarily. The court considers the desirability of keeping a business or professional practice intact and free from the other spouse's claim (section 61.075(1)(f)). A common approach is to award the business to the owner and give the other spouse assets of equal value, called an offset, or a buyout paid over time. Whether that works depends on the other assets available, the size of the marital share and how payments would be secured. A sale is one option, not a requirement. We can talk through the options that fit your situation.

Generally yes, to the extent the records are relevant. Mandatory disclosure includes tax returns (Florida Family Law Rule of Procedure 12.285), and discovery allows document requests, subpoenas to the company's accountant or bank, and depositions. Financial statements, ledgers, business tax returns and bank statements are commonly requested. If the business has trade secrets or customer lists, we can ask the court to limit who sees the records and how they are used. Refusing to produce records the rules require can lead to court sanctions. We can explain how this would work for your company.

Goodwill is value beyond a company's physical assets, tied to its reputation and expected future customers. Enterprise goodwill belongs to the business: its name, location, systems, staff and customer base, which would stay if the owner left. It is a marital asset the court must value (section 61.075(6)(a)1.f). Personal goodwill depends on the owner's own skill, relationships and reputation, and under Thompson v. Thompson, 576 So. 2d 267 (Fla. 1991), it is not a marital asset. How value is split between the two can change a case a great deal. We can review how this applies to your business.

The same valuation rules apply, but goodwill is usually the central issue. Patients or clients who follow a particular doctor or lawyer represent personal goodwill, which is not divided under Thompson v. Thompson. Value that belongs to the practice itself, such as its location, staff, referral sources and systems, can be marital. Equipment, receivables and cash are counted too. Partnership agreements and professional rules on who may own a practice can affect how the interest is handled. Let us look at your practice's structure with you.

Then both spouses' contributions are part of the analysis. The court considers each spouse's contribution to the acquisition, enhancement and production of income of marital and nonmarital assets (section 61.075(1)(g)), and a spouse's work in the company can support a claim that its growth is marital. A spouse on the payroll also raises practical questions: whether the job continues during and after the case, whether the salary matched the work, and how that income affects support. These questions often need attention early. We can help you plan for them.

Retained earnings are profits the business kept rather than paid out. They affect the company's value, because they sit on its balance sheet. When the owner controls the company, they can also raise the question of whether profits were held back for genuine business needs or to make personal income look lower. Florida's child support statute measures business income as gross receipts minus ordinary and necessary expenses (section 61.30(2)(a)3). Care is needed so the same dollars are not counted twice, once in value and again in income. We can review your company's records with you.

There is no single fixed date. Section 61.075(7) sets a cut-off for identifying marital assets, generally the earliest of the date of a valid separation agreement or the date the petition was filed. The valuation date is a separate decision the judge makes as is just and equitable, and different assets can be valued as of different dates. This matters for a business whose value changed during the case, for example after a new contract or a lost customer. We can discuss which date may matter in your case.

A real decline is a legitimate fact, but it should be documented with records, not simply stated. When income drops sharply after filing, the other spouse can be expected to ask why, and records from before and after filing are often compared. For child support, the court must impute income to a parent whose unemployment or underemployment it finds to be voluntary, based on recent work history and other factors (section 61.30(2)(b)). Whichever side you are on, the answer depends on the evidence. We can review your records with you.

Not automatically. These agreements often set a price or formula for buying out an owner and may restrict transfers to a spouse. They are important evidence and may limit how the interest is divided. But a price set for another purpose, such as an owner's death or retirement, may not reflect fair market value, the standard Florida uses for a closely held business in divorce (section 61.075(6)(a)1.f). How and when the price was set, whether it has ever been applied, and who signed all matter. We can review your company's agreements with you.

It can, if it is valid. Assets excluded by a valid written agreement are nonmarital (section 61.075(6)(b)). A premarital agreement must be in writing and signed by both spouses, and it can be challenged for involuntary signing, fraud, duress, coercion or overreaching, or unconscionability combined with a lack of fair disclosure (section 61.079). Postnuptial agreements are judged under Florida case law, including Casto v. Casto, 508 So. 2d 330 (Fla. 1987). The exact wording about the business and its growth often decides how much protection it gives. We can review your agreement in a free consultation.

Intentional dissipation, waste, depletion or destruction of marital assets after filing, or within two years before, is a factor the court considers in dividing property (section 61.075(1)(i)). When there is concern that the business is being drained or used to hide money, we can ask the court for temporary relief while the case is pending, and the court may order an interim partial distribution for good cause (section 61.075(5)). If you run the company, clear records and ordinary-course spending protect you as well. We can talk through the safeguards that fit your case.