A recent Florida appellate court decision will affect how personal goodwill is calculated in a divorce proceeding. Specifically, the case considered if in a marriage dissolution case, must the value of the personal goodwill of all physician-shareholders in a multi-member medical practice be excluded from the net value of the sale of the practice in determining the marital value of the practice?
The court affirmed the lower court's finding that the personal goodwill of a professional is simply not a marital asset in Florida. Personal goodwill, whether it be that of a divorcing spouse or any one of the shareholders in a company, is “not a marketable asset distinct from the individual” who performs services. Personal goodwill—no matter the business setting—is not a part of enterprise goodwill.
To examine the implications of this case on your marital case, please contact a ShindelRock tax professional.
Written by: David Shindel
