Calculating Goodwill in the valuation of a business during a Carlsbad divorce is legally and financially quite complex. Why is the valuation of a business and the associated Goodwill such an important topic in a divorce which involves business or professional practice?
The ownership of a business or professional practice is one of the most complex issues you can face in a Carlsbad divorce. The financial impact of these issues are usually substantial figures which impact both parties in a divorce.
The most important aspect of a business or professional practice which is either totally or partially a community property asset is the “valuation” of the business itself. This is usually a contested and often adversarial issue which involves the testimony of expert witnesses who provide not only the amount of the valuation itself but the process they used to arrive at the valuation.
There are multiple strategies for the valuation of a business or professional practice, and using the right method for valuation is one of the most important details to manage as an experienced divorce attorney. Burke & Domercq have multiple decades of experience and expertise in these cases and advise our clients to protect their interests while working to establish a favorable valuation.
Calculating Goodwill in the valuation of a business during a Carlsbad divorce is usually considered separately. Goodwill is the more intangible contributions an individual brings to a company or practice. This includes but is not limited to their professional reputation, relationship with the market, suppliers and customers as well as the physical location of the business or practice itself.
Goodwill must be considered in relation to the industry or vertical market of the business or practice. If the practice or company generates income which is generally higher than the average or “norm” for their industry, the company or practice is said to have Goodwill. Should it be considered “pre-tax” or “post-tax”? Are their past, present or future factors which will affect the continuation of that income?
Calculating Goodwill in the valuation of a business during a Carlsbad divorce involve complex legal questions which require the advice and counsel of our proven Certified Family Law Specialists. Burke & Domercq invites you to review the recommendations of their clients and the legal industry and contact us or call 760-389-3927 to schedule an appointment with one of our attorneys.