By Joey N. Friedman, CPA, ABV, MAcc, MIB — President, Joey Friedman CPA PA. This article is published by Joey Friedman CPA PA, a Florida professional association. All forensic accounting, business valuation, expert witness, and litigation support services described herein are provided by Joey Friedman CPA PA. Mr. Friedman’s professional credentials and experience are exercised in his capacity as an officer, agent, and licensed CPA practicing under and on behalf of Joey Friedman CPA PA.
Quick Answer
Marital property division in Florida follows the equitable distribution framework under §61.075, Florida Statutes — meaning fair, not necessarily equal. The forensic CPA helps by classifying each asset as marital or separate, valuing closely-held businesses and complex assets, tracing commingled funds, identifying dissipation, and quantifying tax effects of proposed splits. A complete forensic analysis produces a defensible asset schedule that supports mediation, settlement, or trial — protecting the client from giving up marital share or being charged for separate property.
The financial side of a Florida divorce comes down to one fundamental question: what assets and debts are part of the marital estate, and what is each worth on the relevant date? When the marriage involved closely-held businesses, complex investments, or any concealment patterns, answering that question requires forensic accounting analysis.
This article explains how a Florida forensic CPA supports marital property division — identifying assets, distinguishing marital from separate property, valuing the assets that matter, and quantifying any wrongful conduct (dissipation, concealment) that affects the distribution.
The Florida Equitable Distribution Framework
Florida is an equitable distribution state. Under Fla. Stat. § 61.075, the court must equitably distribute marital assets and liabilities — though “equitable” does not necessarily mean “equal.” The statute lists factors the court considers, including:
- Contributions to the marriage (financial and non-financial)
- Economic circumstances of each party
- Duration of the marriage
- Interruption of personal careers or educational opportunities
- Contribution to the career or education of the other party
- Desirability of retaining any asset (including the marital home)
- Contribution to acquisition, improvement, or production of income from marital assets or to the incurring of marital liabilities
- Desirability of retaining the marital home for any dependent child
- Intentional dissipation, waste, depletion, or destruction of marital assets (§ 61.075(1)(i))
- Any other factors necessary to do equity and justice
A forensic CPA supports the equitable distribution analysis by providing the financial picture the court needs to apply these factors.
What Forensic Accounting Contributes
1. Asset Identification
A complete inventory of the marital estate is the foundation. The forensic CPA identifies:
- Real estate (titled and held)
- Bank, brokerage, and retirement accounts (all owners)
- Closely-held business interests
- Investment property
- Vehicles
- Personal property of value
- Intangible assets (intellectual property, goodwill)
- Cryptocurrency holdings
- Insurance with cash value
- Pensions and deferred compensation
The inventory pulls from tax returns, brokerage statements, deeds, business records, and other source documents — not just what the parties have disclosed.
2. Marital vs. Separate Classification
Florida law distinguishes:
Marital property — assets acquired during the marriage by either party (with some exceptions), regardless of how titled.
Separate (non-marital) property — assets acquired before the marriage, gifts and inheritances received during the marriage by one spouse only, assets specifically excluded by valid prenuptial or postnuptial agreement.
The line gets contested when:
- Separate property is commingled with marital property
- Separate property is used to acquire marital property
- Marital efforts contribute to the value of separate property
- Separate property changes form during the marriage
The forensic CPA traces the financial history of each asset, applying Florida tracing methodologies to maintain or transmute the marital/separate characterization.
3. Valuation
Once assets are classified, they must be valued. For most assets, valuation is straightforward (market value at the valuation date). For complex assets, the forensic CPA’s specialty matters:
- Closely-held businesses: Income, market, and asset approach valuations
- Professional practices: Personal vs. enterprise goodwill analysis
- Partnership interests: Fair market value with appropriate discounts
- Stock options and restricted stock: Black-Scholes or other models for unvested awards
- Pensions and deferred compensation: Present value calculations
- Real estate: Often a separate appraisal, but coordinated with overall valuation
For Florida divorces, the standard of value is typically fair market value.
4. Dissipation Analysis
If one spouse has dissipated marital assets (spent them on non-marital purposes or concealed them), the forensic CPA quantifies the dissipation. This becomes a factor under § 61.075(1)(i) that can support an unequal distribution.
Common dissipation patterns:
- Gifts or transfers to relatives
- Expenses on a new partner
- Gambling losses
- Speculative investment losses
- Personal expenses run through a business
The forensic CPA traces the disputed expenditures and quantifies the loss to the marital estate.
5. Hidden Asset Investigation
When one spouse is suspected of concealing assets, the forensic CPA investigates:
- Bank deposit analysis
- Lifestyle vs. income analysis
- Business records analysis (income suppression)
- Cryptocurrency tracing
- International asset tracing (where applicable)
6. Quality of Earnings Analysis
For matters where ongoing income for support purposes is contested (alimony, child support), the forensic CPA analyzes:
- Whether reported income reflects actual economic earnings
- Officer compensation normalization (for business owner spouses)
- Personal expenses run through businesses
- Treatment of K-1 income
- Available cash flow vs. reported income
Practical Workflow
A typical Florida divorce engagement involving forensic accounting:
Week 1-2: Initial consultation; engagement letter; records request to counsel.
Week 3-8: Records collection (through formal discovery). Initial asset inventory takes shape.
Week 6-12: Detailed analysis. Business valuation work proceeds in parallel with general asset analysis.
Week 10-16: Draft report. Discuss with counsel. Refine analysis based on follow-up questions.
Week 12-20: Final report. Disclosure to opposing counsel per court schedule.
Week 16-30: Deposition (typically remote in modern practice). Trial testimony (in-person or remote).
Complex cases extend the timeline; simple cases compress it.
Florida Case Law That Shapes the Analysis
Several Florida appellate cases shape forensic accounting analysis in marital property cases:
- Beers v. Beers, 724 So.2d 109 (Fla. 5th DCA 1998) — dissipation analysis
- Roth v. Roth, 973 So.2d 580 (Fla. 2d DCA 2008) — dissipation timing
- Heinrich v. Heinrich, 609 So.2d 94 (Fla. 3d DCA 1992) — dissipation evidence
- Erp v. Erp, 976 So.2d 1234 (Fla. 2d DCA 2008) — goodwill analysis
- Held v. Held, 912 So.2d 637 (Fla. 4th DCA 2005) — personal vs. enterprise goodwill
- Williams v. Williams, 667 So.2d 915 (Fla. 2d DCA 1996) — business valuation methodology
A forensic CPA experienced with Florida marital property analysis understands this framework.
Frequently Asked Questions
What’s the difference between marital and separate property in Florida?
Marital property generally includes assets acquired during the marriage by either spouse. Separate property typically includes pre-marital assets, gifts received during the marriage by one spouse only, and inheritances. The Florida statute and case law have refined these definitions.
How is a closely-held business valued in a Florida divorce?
Through standard business valuation methodology: income, market, or asset approaches as appropriate, applied with normalization of owner compensation and other adjustments. Florida divorce valuations use fair market value as the standard.
What is personal vs. enterprise goodwill?
Personal goodwill is the value attributable to the individual professional (their reputation, relationships, skills) — typically NOT a marital asset under Florida law. Enterprise goodwill is the value attributable to the business itself (location, systems, brand) — typically IS a marital asset. The distinction is heavily disputed in professional practice divorces.
Can the forensic accountant testify in court?
Yes. The forensic CPA provides written expert report and deposition testimony, and trial testimony if the case goes to trial. The forensic accountant’s work product is prepared with the expectation of cross-examination.
What if my spouse is hiding assets?
The forensic CPA can investigate through the methodology described in this article — bank deposit analysis, lifestyle analysis, business records analysis, cryptocurrency tracing, and other techniques. Discovery in litigation supports the records collection.
How much does this kind of forensic analysis cost?
Costs vary widely. A focused single-issue engagement may run $10,000-$25,000. A comprehensive analysis of a high-asset divorce with closely-held businesses, hidden asset concerns, and dissipation analysis can run $30,000-$100,000+.
Does Joey Friedman CPA PA handle Florida marital property division cases?
Yes. Substantial experience with Florida divorce matters — including business valuation, dissipation analysis, hidden asset investigation, and quality of earnings analysis for income/support determinations.
How early should I engage a forensic CPA in my divorce?
As early as possible. The records collection, analysis, and report preparation all take time. Engaging the forensic CPA in the initial discovery planning phase allows targeted document requests, properly scoped subpoenas, and sufficient analytical time before mediation or trial.
Working with a Forensic CPA on Florida Marital Property Division
If you are an attorney handling a Florida divorce involving closely-held businesses, complex assets, hidden asset concerns, or dissipation issues, engaging a credentialed forensic CPA early in the matter substantially improves your client’s outcome.
Joey Friedman CPA PA, through its President Joey N. Friedman, CPA, ABV, MAcc, MIB, provides forensic accounting and business valuation services for Florida divorce matters. The firm handles equitable distribution analysis, business valuation, dissipation quantification, hidden asset investigation, and quality of earnings for support purposes. Contact the firm to discuss your specific matter.
Related Florida Divorce Forensic Resources
Equitable distribution analysis in Florida frequently begins with a forensic-CPA review of disclosed financials. For forensic-CPA scope on Florida Forms 12.902(b)/(c), see Florida Financial Affidavit: What a Forensic CPA Reviews. For typical engagement-fee ranges in Florida divorce matters, see How Much Does a Forensic Accountant Cost in 2026?
About Joey Friedman CPA PA
Joey Friedman CPA PA is a Florida professional association providing forensic accounting, business valuation, expert witness, and litigation support services. The firm is led by Joey N. Friedman, CPA, ABV, MAcc, MIB, who serves as the firm’s President.
All services described in this article are provided by Joey Friedman CPA PA. Engagement letters and professional services are issued by the firm. Joey N. Friedman signs in his capacity as the firm’s President — as an officer and agent acting on behalf of Joey Friedman CPA PA, not in any personal or individual capacity. Mr. Friedman’s professional credentials — including CPA license, ABV (Accredited in Business Valuation, AICPA), and ACFE membership — are exercised under the firm.
To engage Joey Friedman CPA PA, contact the firm:
- Phone: 954-282-9615
- Contact form: Contact the Firm
Disclaimer: This article is for informational purposes only and does not constitute legal, accounting, or tax advice. Engagement of Joey Friedman CPA PA is subject to a written engagement letter executed between Joey Friedman CPA PA and the engaging party. No attorney-client or accountant-client relationship is created by reading this article.
Related coverage from Joey Friedman CPA PA
- Dissipation of Marital Assets: How a Forensic CPA Detects and Quantifies It
- How to Find Hidden Assets in a Florida Divorce
- Divorce CPA: When You Need an Accountant Who Specializes in Divorce
- Lifestyle Analysis in High-Net-Worth Divorce
About This Service
This article is part of Joey Friedman CPA PA’s broader practice in forensic accounting service overview. Visit the main service page for a complete overview of how we support attorneys, businesses, and individuals across Florida and nationally in financial disputes, litigation, and forensic engagements.
Related Coverage: Marital property division in Florida starts with the financial affidavit. For methodology on forensic affidavit review, see our Florida Financial Affidavit: Forensic CPA Review Guide with Daubert-defensible reconciliation approaches.