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What is the Goodwill Associated with a Business in Divorce?

On Behalf of | Dec 9, 2019 | Professional Practice & Business Ownership

What is the Goodwill associated with a business in divorce and why does it matter?  Goodwill is a term which is generally associated with the intangible benefits one or both of the spouses bring to a community property owned business or professional practice.

Goodwill is considered as a separate issue from the valuation of the business asset itself, or from other intangibles contributed by the spouse who owns or runs a company.  Goodwill associated with a business in divorce accounts for the value of location, relationships with customers and suppliers and the reputation of an individual as it associates to the value and viability of a California business.

Generally speaking, if the business interest or professional practice was acquired or started during the course of the marriage, or if marital funds were used to acquire or support the business or professional practice, the asset will be considered fully or partially a community asset.

This is a complex legal issue and this is why it is so important to work with the proven divorce attorneys at Burke & Domercq, APC who have extensive expertise and experience in Carlsbad divorce cases which involve a business or professional practice.

Protecting your interest in the division of a business or professional practice during a divorce requires extensive legal skill.  If you are considering a divorce in Oceanside, Carlsbad or Encinitas which involves the ownership of a business interest or professional practice it is important to contact the experienced Certified Family Law Specialists at Burke & Domercq, APC or call us at 760-389-3927 to schedule an appointment.

Learn about the Goodwill associated with a business in divorce and all of the aspects of business valuation and the division of a business asset or professional practice in a Carlsbad divorce.

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