Florida Receiverships in Family Law: A Practical Guide
- Jane Muir
- Jun 2
- 5 min read
Updated: Oct 10
J. Muir & Associates | Florida Bar Certified | NAFER Member
Legal Disclaimer and Author Information
This guide provides general educational information about Florida receivership law and should not be construed as legal advice. Receivership law is complex and fact-specific. Before making decisions about receivership in any family law case, consult with an attorney licensed in Florida who is familiar with current law and your specific circumstances. Florida Statute 454.23 makes the unauthorized practice of law a third-degree felony.
This guide is provided by Jane W. Muir, Managing Shareholder of J. Muir & Associates, P.A., Coral Gables, Florida. Ms. Muir is recognized as a Super Lawyer (2021–2024), holds an AV Preeminent Martindale-Hubbell rating, and has been appointed as Receiver in the Eleventh Judicial Circuit of Florida. She received her JD from the University of Miami School of Law and has over 15 years of business law experience.
Contact: J. Muir & Associates, P.A. | 121 Alhambra Plaza, Suite 1500, Coral Gables, FL 33134 | (786) 226-0971 | www.floridareceivership.com
Executive Summary and Decision Framework
A receivership allows a court-appointed neutral party to take temporary control of a business during divorce proceedings to prevent waste, ensure transparency, and preserve value.
When Receivership Is Right
Pursue receivership when three conditions align: (1) one spouse exclusively controls a business generating over $100,000 annually, (2) you have documented evidence of financial misconduct or asset diversion, and (3) simpler remedies like forensic accounting or neutral bookkeeping cannot adequately protect the assets.
When to Choose Alternatives
Skip receivership if the business generates under $100,000 annually, if basic accounting oversight would solve the problem, if both parties can cooperate on interim management, or if receivership costs would exceed potential asset losses.
Economic Reality
Receivership typically costs $35,000–65,000 and lasts 6–18 months. The business must be able to support these costs while maintaining operations, making revenue size a critical threshold factor.
Legal Process and Requirements
Legal Authority
Florida Family Law Rule 12.620 directs that "Receivers shall be governed by Florida Rule of Civil Procedure 1.620." Florida Statute 714.06 authorizes receivership when property faces waste, loss, substantial diminution in value, or voidable transactions.
Standards for Appointment
Courts require a showing that there is a substantial likelihood of success on underlying claims, there would be irreparable harm without appointment, the harm to the moving party would outweigh the harm to the opposing party, and that the appointment of a receiver serves the public interest. Emergency appointments are possible with appropriate security posting.
The Three-Phase Process
Phase 1: Preparation (2–4 weeks) – During the preparation phase, the business seeking a receiver gathers documented evidence of misconduct, identifies qualified receiver candidates, and completes a cost-benefit analysis, focusing on specific, documented instances rather than general complaints.
Phase 2: Filing and Hearing (1–2 weeks) – During this second phase, the business will file a verified motion with sworn testimony, detailed allegations with supporting documentation, and a proposed order specifying receiver powers. This will require a presentation of evidence of specific misconduct and demonstrating the necessity for this extraordinary remedy.
Phase 3: Implementation – During implementation, the receiver assumes business control, files a complete inventory within 20 days, implements financial controls, and submits quarterly court reports. Business operations will continue under the receiver’s professional management while preserving the value of the business.
Key Legal Protections
The receiver works as a court fiduciary, not for either spouse, with judicial immunity for actions taken under lawful court authority. Their duty is preserving assets for whoever ultimately receives them in the divorce settlement.
Costs and Economic Analysis
Direct Costs
Receiver fees range from $200 to 500 per hour, with total costs averaging $35,000–65,000. Additional expenses include forensic accountants ($10,000–50,000+), business managers ($150–300/hour), legal counsel ($300–600/hour), and bonding ($2,000–10,000).
Economic Viability
Receivership proves cost-effective when it prevents asset losses exceeding its costs, resolves cases faster than the available alternatives, preserves valuable business relationships, or provides reliable valuation information. The $100,000 annual revenue threshold reflects the reality that receivership costs typically consume 15–25% of annual business revenue.
Payment Structure
Receiver fees are paid from business assets when possible. If insufficient cash flow exists, courts may order parties to advance funds, credited against ultimate property distribution. Receivers post performance bonds, and moving parties may post security for potential damages.
Receiver Selection
Primary Qualification Standard
Business owners should choose receivers who possess both relevant industry experience and demonstrated receivership competency. This dual requirement ensures operational understanding while maintaining proper fiduciary standards and court compliance.
Essential Requirements
Seek candidates with prior receivership appointments, specific industry knowledge, clear fee structures, available references, and no conflicts of interest with either party. Professional credentials like CPA certification enhance qualifications but aren't always required.
Disqualifying Factors
Automatically exclude candidates with any financial or personal relationships to either party, insufficient industry knowledge, unwillingness to provide references, or unclear fee structures. These red flags indicate potential conflicts or inadequate qualifications.
Court Requirements
Potential receivers must provide statements under penalty of perjury regarding qualifications, disclose any conflicts of interest, confirm availability and capacity, and detail their fee structures. Courts automatically disqualify affiliates of either party or those with material adverse interests.
Attorney Guidelines
Preparation Essentials
Attorneys assisting businesses in starting a receivership should gather documented evidence of misconduct, identify qualified receiver candidates, and complete a cost-benefit analysis before filing. Successful receivership appointments depend on thorough preparation rather than emergency responses to discovered problems.
Timing and Scope Decisions
File promptly when evidence shows ongoing damage, but request only the specific powers necessary for asset protection. Overly broad receiver authority creates unnecessary costs and potential complications, while delayed filing allows continued asset dissipation.
Post-Appointment Management
Establish clear communication protocols with the receiver, monitor costs against budgets regularly, and maintain focus on case resolution timelines. Effective receivership management requires ongoing attention rather than passive oversight.
Working with Receivers
Define decision-making authority clearly, create escalation procedures for disputes, and maintain appropriate professional boundaries that respect the receiver's court fiduciary role. Review quarterly reports promptly and address problems before they escalate.
Alternatives to Receivership
When full receivership proves unnecessary or too expensive, consider these alternatives:
Neutral Bookkeeper – Provides financial oversight without operational control. Best for situations requiring transparency but not management intervention. Costs significantly less but cannot address operational mismanagement.
Forensic Accounting – Investigates specific allegations of misconduct. Excellent for documenting problems and can be combined with other remedies. Provides no ongoing oversight or protection.
Interim Management Agreements – Allows negotiated oversight between parties who can still cooperate. Flexible and less expensive but requires good faith participation from both sides.
Court-Ordered Controls – Simple measures like dual signatures or regular reporting. Benefits include immediate implementation and lower costs, but these controls can be difficult to enforce without receiver authority.
Essential Questions and Answers
How long do receiverships last? Most family law receiverships continue 6–18 months, averaging 11 months. Duration depends on resolving the underlying divorce case rather than business issues.
What happens if one spouse won't cooperate? Non-cooperation with court-appointed receivers can result in contempt charges, monetary sanctions, and adverse inferences. Receivers possess court authority, making interference equivalent to violating court orders.
Can receivers sell the business? Generally not without court approval and input from both parties. Emergency sales to prevent total value loss may proceed with expedited court procedures.
How are fees paid? From business assets when possible; otherwise, parties advance funds credited against property distribution. All major expenses require court oversight and approval.
Resources and Final Information
Legal References
Florida Family Law Rule 12.620 and Civil Procedure Rule 1.620 (procedural requirements)
Florida Statute 714.06 (appointment grounds)
Section 61.075 Florida Statutes (equitable distribution)
Professional Resources
National Association of Federal Equity Receivers (NAFER): www.nafer.org
Florida Bar Family Law Section, Business Law Section, Litigation Section
Legal Disclaimer
This guide provides educational information only and does not create attorney-client relationships. Laws change regularly and individual cases involve unique factors requiring specialized analysis. Past results do not guarantee similar outcomes. For current legal information, consult qualified attorneys familiar with your specific circumstances. Providing legal advice without proper licensing constitutes unauthorized practice of law under Florida Statute 454.23.
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