It’s complicated – Goodwill in divorce proceedings provokes much conflict

Description

Abstract: When a divorce includes a private business interest, expect a fight. Value is in the eye of the beholder, and valuation discrepancies are most common when a business has intangible assets. It’s not uncommon for judges to look to other jurisdictions for guidance. This article looks at how business value can be broken down into two pieces; how U.S. courts divide goodwill three different ways; and how many jurisdictions break down intangible value into two pieces. A sidebar discusses a Kentucky Supreme Court decision to include enterprise goodwill, but exclude personal goodwill, from marital estates.