When a marriage ends, a closely held business can become one of the hardest assets to divide. A closely held business is a company owned by a small number of people, often spouses, relatives, or a single owner. In Florida divorces, problems often arise when business income, household expenses, company accounts, and personal assets overlap.
Florida Courts First Classify the Business Interest
Florida uses equitable distribution in divorce. That means the court starts with the idea that marital assets and debts should be divided equally, unless specific facts support a different result. The court must also separate marital property from nonmarital property before dividing anything.
A business may raise questions in both categories. One spouse may have started it before marriage, but the business may have grown during the marriage. A spouse may own the shares, while both spouses helped build the company. The court may also look at whether marital money paid business debts, covered payroll gaps, bought equipment, or supported expansion.
That does not mean one spouse automatically receives half the company itself. Often, the real issue is the value of the marital interest and how that value fits into the larger property division.
Mixed Finances Can Make Valuation Harder
Business valuation becomes more difficult when personal and company finances blur. For example, a spouse may pay personal expenses through the business, use company vehicles for family needs, delay income, or run personal purchases through business accounts.
Florida law now addresses closely held business interests more directly. For marital interests in closely held businesses, Florida Statute § 61.075 uses fair market value as the standard. Fair market value generally means the price a willing buyer and willing seller would agree to when both understand the relevant facts and neither faces pressure to act.
Goodwill can also matter. Goodwill is the value of a business beyond its equipment, cash, and physical property. Florida’s updated statute distinguishes between business value and value tied to one person’s continued involvement, skill, or reputation.
Protect Your Business and Your Financial Future
At Wickersham & Bowers, we help clients address divorce, property division, and related family law issues with careful attention to the facts. When a closely held business is involved, we can help you understand what questions need answers before you make long-term decisions.
Call 386-252-3000 or reach out through our contact form to discuss your situation.
