What Is a Receivership and Why Does It Matter in High-Stakes Business Divorce Cases in Florida?

When divorce cases involve the division of a business, family law attorneys are often thrust into the world of complex financial disputes and power struggles that go far beyond typical marital dissolution.

In Florida, one underutilized but incredibly effective tool for preserving business value and streamlining litigation is the appointment of a court-appointed receiver.

But what is a receivership, and why should attorneys handling high-profile divorces care?

Let’s break it down.

What Is a Receivership?

A receivership is a legal remedy where the court appoints a neutral third party—a “receiver”—to take control of specific assets, usually a business or property, during ongoing litigation. The goal? To protect the value of the asset, prevent mismanagement, and maintain fairness for both parties until the court makes a final decision.

In Florida, receivers are governed by both statutory law and judicial discretion. Chapter 714 of the Florida Statutes (the Florida Commercial Receivership Act) provides the framework for commercial receiverships. While it’s more commonly applied in commercial litigation or creditor disputes, the same logic applies when a business becomes a central issue in a contentious divorce.

Why Use a Receiver in Divorce Cases Involving a Business?

Let’s say your client’s spouse co-owns or operates a company that's suddenly being drained of funds, mismanaged, or used to manipulate income in anticipation of divorce proceedings. You need to act quickly to preserve value.

Here’s where a receiver becomes a game-changer.

1. Preserves Business Value During Litigation

During a divorce, emotions run high. One spouse might intentionally sabotage business operations out of spite—or simply run the company into the ground due to inexperience. A receiver can step in to manage the business objectively, stabilize cash flow, and keep operations running, ensuring the business remains a valuable marital asset.

2. Provides Transparency and Financial Clarity

Receivers are accountable to the court. That means comprehensive financial reporting, forensic investigation (when needed), and neutral oversight. This transparency can reveal hidden income, unreported profits, or questionable transactions—critical issues in equitable distribution and spousal support calculations.

3. Prevents Asset Dissipation and Fraud

If your client suspects the other party is transferring funds, manipulating financial records, or otherwise reducing the business's value, a receiver can freeze such conduct immediately. Once appointed, the receiver has full authority to manage, audit, and even restrict access to financial systems.

4. Reduces Litigation Tension

When both sides are arguing over who gets to manage the business—or worse, interfering with its operations—the case can quickly spiral into chaos. A neutral receiver removes that friction. The court, not either spouse, controls the business through the receiver, allowing the litigation to proceed more calmly and with less suspicion.

5. Facilitates Accurate Business Valuation

How do you value a business in divorce if one party is manipulating the numbers? You don’t. Or at least, you don’t do it accurately without intervention. A receiver can bring in experts, prepare records, and create an environment where a true valuation is actually possible. That sets the stage for a fair division of marital assets.

When Should Family Law Attorneys Consider a Receivership?

Receivership isn’t for every case. It’s a relatively drastic remedy—and judges will require a strong showing of need. But in these situations, it should be at the top of your legal toolkit:

• There's clear evidence of mismanagement, fraud, or waste within the business

• One spouse is freezing the other out of business decisions or finances

• There’s a need to ensure business continuity during protracted litigation

• You’re unable to get accurate financial records or cooperation from the opposing party

• There’s concern about violating fiduciary duties or diverting funds

To succeed, you'll need a well-drafted motion supported by facts—think emails, financial statements, and declarations pointing to wrongdoing or risk. And you’ll want to nominate a qualified receiver with experience in that industry, not just a general CPA.

What Florida Law Says About Receivers

While family law statutes don’t explicitly provide for receivers in divorce, courts have broad equitable powers. Florida case law supports the use of receiverships in divorce cases when it’s necessary to preserve marital assets or ensure fairness.

For instance, in Cooper v. Cooper, Florida’s Fourth District Court of Appeal affirmed the trial court’s appointment of a receiver over a husband’s closely held corporation during divorce, citing concerns over financial mismanagement and the wife’s inability to obtain accurate records.

Courts have consistently ruled that protecting marital assets—even business assets—is within their equitable authority.

Final Thoughts: Not Just a Remedy—A Strategic Advantage

If you’re a family law attorney dealing with divorces involving businesses, think of a receivership not as a last resort—but as a proactive strategy.

It can level the playing field, ensure fair valuation, and preserve the very assets your client is fighting for. More importantly, it shows your client that you’re not just thinking like a divorce lawyer—you’re thinking like a business advisor.

Because at the end of the day, protecting a business in divorce isn’t just about spreadsheets and financial statements. It’s about preserving livelihoods, reputations, and long-term value—and in Florida, appointing a receiver may be your best path forward.

Contact J. Muir & Associates Today

If you’re navigating a high-conflict divorce involving a business, and you suspect financial mismanagement, hidden assets, or operational sabotage, it’s critical to act swiftly to protect your client’s interests.

Appointing an experienced receiver may be the key to preserving business value, uncovering the full financial picture, and ensuring a fair outcome in court.

At J. Muir & Associates, we work closely with family law attorneys to provide strategic legal solutions when businesses are at stake during divorce proceedings. Our team is well versed in Florida receivership laws and has the resources to help you safeguard assets before it’s too late.

Schedule a consultation today to explore whether receivership is the right tool for your client’s case—and to ensure no dollar or detail is lost in the process.