In a Florida divorce, a business valuation expert Florida courts rely on must split goodwill into two buckets. Enterprise goodwill is marital property. Personal goodwill is not, but since July 1, 2024 you must prove it with concrete evidence. Start collecting that proof before anyone sets the valuation date.

Learn the 2024 rule

Effective July 1, 2024, Florida added section 61.075(6)(a)1.f to the equitable distribution statute. It tells courts how to value a marital interest in a closely held business. A business valuation expert Florida family courts hear must apply that line. Goodwill that stays with the company after the owner leaves is a marital asset. Goodwill tied to the owner's own skills and reputation is not.

Florida's Supreme Court drew the same line for professional practices in Thompson v. Thompson in 1991. It described personal goodwill as the owner's probable future earning capacity. A law firm note adds that the 2024 amendment also makes fair market value the standard for valuing these businesses.

Neither the statute nor case law says which method splits the two kinds of goodwill, according to a CPA firm's analysis. That leaves the choice of method to the expert, and to the court.

Prove it is personal

A 2025 appellate decision in Donahue is the warning. Without concrete evidence that goodwill was personal, the court treated all of it as enterprise goodwill and divided it. The default, as one summary puts it, is that goodwill is enterprise goodwill.

So the burden of showing the personal share falls on the spouse who owns the business. I'd gather evidence that customers follow the owner, not the brand. Signed contracts in the owner's name, referral records and staff interviews all help. A business valuation expert Florida family lawyers hire will ask for exactly these items.

See how far two experts can drift

A Tampa law firm notes that an expert who supports a large personal share can produce a much lower marital value than one who treats most goodwill as enterprise. Say a company holds $1 million of goodwill. If 70 percent is personal, marital goodwill is $300,000. If only 20 percent is personal, it is $800,000.

That is a half-million-dollar swing from one assumption. It is why the split deserves its own section in the report, with its own evidence.

Pick the date and the method with your lawyer

The court sets the valuation date, and the statute asks for a date that is fair to both sides given the case. Different assets can carry different dates. The cut-off for deciding what is marital is a separate question, usually the filing of the petition or an earlier valid agreement.

On method, a Florida appeals court in the Busto case upheld a trial judge's use of the seller's discretionary earnings method. The husband had argued that his salary was personal goodwill. The court found the valuation supported by competent evidence and within the judge's broad discretion.

That is a useful reminder. Florida trial judges have wide room to choose a method, so the expert's reasoning matters more than the label.

Works when, breaks when

A goodwill split works when the evidence is documented before the fight starts, and when the expert explains the allocation in plain steps. It breaks when the owner claims all the value is personal but cannot show it, or when the books mix family and business spending.

The usual mistake is relying on a broker's listing price or an online calculator. Neither separates personal from enterprise value, and neither will meet a court's standard.

Hire the business valuation expert Florida spouses need early

A business valuation expert Florida spouses retain early can shape the evidence, not just report it. Early work lets you separate personal and enterprise value in the records, such as who signs the contracts. Hiring after the fight begins leaves the expert with whatever documents happen to exist.

Two traps deserve a look. Before 2024, value tied to a non-compete in a sale was generally treated as personal goodwill, a CPA firm explains, so ask whether any sale agreement for the company contains one. And a business owned before the marriage can still carry a marital share. Florida treats growth caused by either spouse's work, or by marital funds, as marital. Ask your expert to fix the starting value and its date.

Gather five documents now

Before the valuation starts, collect five items. Three years of tax returns, the latest financial statements, major customer contracts, an org chart showing who does the revenue-producing work, and records of how customers find the company. Hand them to your attorney and to the expert together. A tidy file shortens the work and removes a source of cost and delay. Keep a copy of every document you hand over.

Frequently Asked Questions

Q: Is business goodwill divided in a Florida divorce? A: Enterprise goodwill is. Personal goodwill is not. Since July 1, 2024 the statute draws that line, and the owner must prove which is which.

Q: Which valuation date does Florida use? A: The judge sets it based on fairness to both sides, and assets can be valued on different dates. Ask your lawyer which date applies to yours.

Q: Can the court use seller's discretionary earnings? A: A Florida appeals court upheld that method in Busto. Trial judges have broad discretion over methods. The expert must explain why the method fits.

Q: Who decides what portion of goodwill is personal? A: The judge decides, using the evidence and expert opinions. Neither the statute nor case law fixes a method.