Personal vs. enterprise goodwill – Another state recognizes the critical difference

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Abstract: The Kentucky Supreme Court recently joined the majority of states that distinguish between personal and enterprise goodwill when valuing a business. Such a distinction can significantly affect divorce settlements when one spouse holds an interest in a closely held business or sole proprietorship — particularly a professional practice. This article looks at how the court came to its conclusion that spouses will receive no share of their partner’s personal goodwill.