High-Asset Divorce in Florida

A high-asset Florida divorce uses the same statutory framework as any other dissolution of marriage, but the stakes and the technical work are substantially greater. Equitable distribution under Florida Statutes § 61.075 still controls, but the difference between a well-executed valuation and a mediocre one can be hundreds of thousands or millions of dollars.

Business Valuation

Closely held businesses, professional practices, and family-controlled entities frequently dominate the marital estate in South Florida. Three approaches are commonly used:

• Income approach. Capitalization of earnings or discounted cash flow, based on normalized historical earnings adjusted for owner compensation, perquisites, and non-recurring items.
• Market approach. Comparable company multiples drawn from public market data and private transaction databases.
• Asset approach. Adjusted net asset value, used for holding companies and businesses with limited goodwill.

Florida courts traditionally distinguish between "enterprise goodwill" (tied to the business itself, divisible) and "personal goodwill" (tied to the individual professional, generally not divisible). Properly characterizing and valuing each is a major issue in physician practices, law firms, and other professional service businesses.

Executive Compensation

Restricted stock units (RSUs), performance share units (PSUs), stock options, deferred compensation, and bonus structures require careful treatment. Florida courts often apply a "time rule" (also called the Hug or Nelson formula) to allocate awards granted during the marriage but vesting afterward between marital and nonmarital components. Awards granted as compensation for past services are generally marital; awards granted as incentive for future services are typically partly nonmarital. The grant agreement, plan documents, and the employer's HR records are essential.

Real Estate Portfolios

Beyond the marital home, many South Florida couples hold investment properties, vacation homes, and commercial real estate. Each asset requires:

• A current appraisal or broker's price opinion
• Analysis of marital vs. nonmarital character (date of acquisition, source of down payment, who paid the mortgage and from what funds)
• Identification of debt and equity
• Consideration of tax consequences of a sale, including depreciation recapture

Tracing Premarital and Nonmarital Funds

The most difficult equitable distribution disputes in high-asset cases involve tracing. A spouse who deposited a $5 million premarital account into a joint brokerage and then traded actively through the marriage must show -- with statements and accounting work -- that the nonmarital character can still be identified. Florida's commingling and source-of-funds doctrines determine when nonmarital property loses its character and becomes marital.

Retirement Plans, Pensions, and Deferred Compensation

401(k)s, IRAs, defined-benefit pensions, nonqualified deferred compensation plans, and supplemental executive retirement plans (SERPs) all require careful drafting. Defined-benefit pensions usually require a Qualified Domestic Relations Order (QDRO); nonqualified plans require a separate domestic relations order specific to the employer plan; IRAs are transferred under a transfer incident to divorce. Getting these orders wrong creates immediate tax exposure.

Alimony in High-Income Cases

The 2023 alimony reform caps durational alimony at 35% of the difference between the spouses' net incomes, but high-income cases often turn on what counts as "income." Variable bonuses, deferred compensation, capital gains, distributions from S-corporations, and rental income each have their own analysis. Imputing income to an underemployed spouse may also be in play.

Privacy

Most Florida divorce filings are public records. In a high-profile case, the parties may move to seal portions of the file, particularly financial affidavits and business valuations. Florida Rule of Judicial Administration 2.420 governs the procedure. A protective order can also limit who has access to sensitive information during discovery.

Call 786-522-1411 to discuss your high-asset Florida divorce.