Posted by Nydia Streets of Streets Law in Florida Divorce
What date does a Florida family court use to value assets in a divorce? Since divorce cases can span years, the value of an asset at the time of filing for divorce may be different from the value at the time of the trial. According to the Florida Statutes, “The date for determining value of assets and the amount of liabilities identified or classified as marital is the date or dates as the judge determines is just and equitable under the circumstances. Different assets may be valued as of different dates, as, in the judge’s discretion, the circumstances require.” Fla. Stat. 61.075(7).
In the divorce case Busto v. Arias, 3D24-0921 (Fla. 3d DCA March 19, 2025), the former husband appealed three issues: (1) the valuation of a marital business, (2) the trial court’s determination of his income for purposes of child support, and (3) the valuation of the marital home. The appellate court affirmed on all three issues and discussed them in turn.
As to the valuation of the marital business, the former husband argued it was incorrect for the trial court to treat the income paid to him by the business as part of the valuation. Noting that the former husband did not provide any evidence/expert testimony as to valuation of the business, the appellate court held “The trial court appears to have valued the business using the seller’s discretionary earnings method. This method includes pre-tax net income plus, among other factors, the owner’s compensation. The trial court, following this formula, took the gross business income, subtracted the cost of goods sold (which included the owner’s compensation) and expenses to determine net income, then added back in the owner’s compensation to arrive at the final valuation. Here, where neither party proffered expert testimony regarding a method of computation, the trial court was within its discretion to ‘adopt a valuation that is supported by competent, substantial evidence.’ Lally Orange Buick Pontiac GMC, Inc. v. Sandhu, 207 So. 3d 981, 986 (Fla. 5th DCA 2016).”
Regarding the former husband’s income argument, the appellate court held “The 2023 profit and loss statement, which the trial court concluded is the best evidence, supports the trial court’s conclusion. The profit and loss statement lists a ‘cost of good sold’ of $37,261.24 attributable to [the former wife]. This is the amount of [former husband’s] temporary support obligations, and it is a separate line item from [former husband’s] salary draw. This therefore provides competent substantial evidence to support the trial court’s conclusion that [former husband] paid [former wife] ‘$37,261.24 from the business income’ and that such sum should be imputed as part of [former husband’s] income.”
Finally regarding the valuation of the marital home, the former husband contends the trial court erred in using the value indicated in the former wife’s financial affidavit rather than the higher value indicated in the former husband’s financial affidavit. The court noted the former husband’s financial affidavit was filed about two years prior to the trial date while the former wife’s affidavit was filed more recently. The court held “We affirm the trial court on the home valuation as well because [former husband] offers no explanation, to this court or the trial court, why it would have been more equitable for the court to use a significantly older valuation over the more recent one, or how the trial court’s relying on the significantly newer valuation constituted an abuse of discretion.”
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