Goodwill hunting in divorce

Description

Abstract: In divorce cases, goodwill is both difficult to define and often understated. Parties — and experts — seldom agree on the value of the business in a marital dissolution situation, especially when substantial intangible assets are involved. Also, state statutes may be ambiguous, legal precedent is inconsistent and courts may be granted significant leeway in divvying up business assets. This article examines a hypothetical divorce case and finds that attorneys and valuators need to understand applicable state statutes and case law. (Updated 5/31/12)