When a well-known athlete, entertainer, media personality, or high-profile founder divorces, one of the most valuable things in the marriage may not appear on any bank statement. It is the name itself: the reputation, recognition, and ability to earn money from fame. Can the other spouse claim a share of that value?

The answer depends heavily on which state’s law applies. Florida takes a narrower approach than some states, and that difference matters for the many public figures who live in Palm Beach, Jupiter, and the rest of Palm Beach County.

In business valuation, goodwill is the value of a business beyond its physical assets, such as its reputation and the expectation that customers will keep coming back. “Celebrity goodwill” applies the same idea to a person: the extra earning power that comes from being famous.

Courts that recognize celebrity goodwill reason that if a spouse’s fame grew during the marriage, partly with the other spouse’s support, the value of that fame should be shared like any other marital asset.

Florida’s leading case is Thompson v. Thompson, 576 So. 2d 267 (Fla. 1991). The Florida Supreme Court drew a line between two kinds of goodwill:

Florida’s leading case is Thompson v. Thompson, 576 So. 2d 267 (Fla. 1991). The Florida Supreme Court drew a line between two kinds of goodwill:

• Enterprise goodwill belongs to a business itself. It comes from the company’s brand, systems, location, staff, and customer relationships, and it would survive if the owner walked away. If the business is marital, enterprise goodwill can be divided.
• Personal goodwill comes from an individual’s own skill, reputation, and relationships. Because it cannot be sold apart from the person, it is not a marital asset in Florida.

The Fourth District Court of Appeal, which hears appeals from Palm Beach County, applied this rule in Held v. Held, 912 So. 2d 637 (Fla. 4th DCA 2005). It reversed a valuation that had folded the husband’s personal goodwill into the value of his business. Florida courts continue to follow Thompson, including in a 2024 decision involving a large medical practice. See Rosenberg v. Rosenberg, 391 So.3d 975 (Fla. 5th DCA 2024).

For a celebrity, much of the value of a famous name looks like personal goodwill. It depends on the person’s continued presence, talent, and public image. Under Thompson, that personal value generally is not divided in a Florida divorce. However, this also depends on the circumstances and the nature of the contracts entered into during the marriage.

Florida’s approach contrasts sharply with some well-known decisions elsewhere.

• New Jersey. In Piscopo v. Piscopo (N.J. Super. Ct. App. Div. 1989), a court treated a comedian’s celebrity goodwill as a divisible marital asset.
• New York. In Elkus v. Elkus (N.Y. App. Div. 1991), the court held that the increase in value of an opera singer’s career during the marriage could be marital property where the husband contributed to it. New York changed its law in 2016, and courts there no longer treat enhanced earning capacity as divisible property.

These cases matter for Florida residents because many public figures have ties to more than one state. Where a divorce is filed can change which rules apply.

The fact that personal fame isn’t divided doesn’t mean a celebrity’s business interests are off the table. Many assets connected to a famous name are treated as property.

• Businesses built around the name. Production companies, apparel lines, restaurants, and licensing companies can have enterprise goodwill, especially if they have staff, contracts, and brand value that would continue without the individual.
• Trademarks and intellectual property. Registered trademarks, copyrights, and catalogs created or acquired during the marriage may be marital assets, even when they carry the celebrity’s name.
• Contracts and receivables. Endorsement fees, appearance fees, royalties, and bonuses earned during the marriage are generally marital, even if they are paid after the divorce. Payment for work performed after the divorce is usually treated differently.
• Growth in premarital assets. A brand or business owned before the marriage starts as nonmarital property. Growth in its value caused by marital funds or either spouse’s efforts during the marriage can become marital.

Separating enterprise value from personal value is one of the hardest valuation questions in family law. It usually requires a forensic accountant and a business valuation professional who understands Thompson.

Even if a famous name isn’t divided as property, the income it produces is central to alimony and child support. Courts look at actual income and, in some cases, earning capacity. Celebrity income is often irregular, with large contracts one year and little the next, so how income is averaged or projected can shape the outcome. Florida’s alimony law changed significantly in 2023, which adds another layer for high earners.

Florida divorce filings are generally public records, though some sensitive information, such as account numbers, is protected. For public figures, a strategy to resolve financial issues through private mediation and a carefully drafted settlement can keep many details out of the court file. Confidentiality provisions in a settlement agreement can also help.

The clearest way to protect a name, brand, or intellectual property is a prenuptial or postnuptial agreement. An agreement can define who owns trademarks and business interests, how growth in a brand will be treated, and how future endorsement income will be handled. Florida courts generally enforce valid agreements, but they must be properly negotiated, with fair financial disclosure.

Palm Beach County is home to many professional athletes, entertainers, media figures, and business founders, from the island of Palm Beach to Jupiter, Wellington, and Boca Raton. Divorces here are heard in the 15th Judicial Circuit, and appeals go to the Fourth District Court of Appeal, the same court that decided Held. Many local residents also keep homes in New York, New Jersey, or California, so it is important to look early at where a divorce should be filed and which state’s law may apply.

If you or your spouse has a public profile, the valuation and privacy issues in your divorce deserve careful planning from the start. Call the Law Offices of James S. Cunha, P.A. at (561) 429-3924 to schedule a confidential consultation. Consultations are by appointment only.

This post provides general information, not legal advice. Every case depends on its own facts.