Business Valuation in Divorce: Personal vs. Enterprise Goodwill Explained

Personal goodwill in divorce cases is highly contested. Personal goodwill vs. enterprise goodwill can significantly impact the business valuation in divorce and ultimately the martial estate. In this video, Jaimie explains the difference between personal goodwill and enterprise goodwill, how each can affect the value of a business, and why the distinction matters when valuing a business in divorce. She also discusses the factors used to evaluate personal goodwill in a divorce case, walks through an example involving a medical practice, and explains why the jurisdiction where the divorce case is being heard can play an important role in how goodwill is treated. If you are a business owner or spouse of a business owner going through divorce or an attorney handling a case involving a closely held business, understanding goodwill in business valuation can be critical to reaching the right valuation and outcome. ABOUT ARA Do you need help with a high-net-worth divorce, fraud investigation, or business dispute? Visit https://www.araforensics.com/ to learn more about our forensic accounting, valuation, and litigation support services. Request a Consultation: https://www.araforensics.com/contact/ Contact our office: (314) 279-9223 Jaimie Klawitter, CPA, CVA https://www.araforensics.com/about/ja...   / jaimie-klawitter   Chapters: 00:00 – Goodwill impacts the marital estate in a divorce 00:11 – What is enterprise goodwill? 00:20 – What is personal goodwill? 00:33 – Factors that determine the value of personal goodwill 00:57 – Personal goodwill example: medical industry 01:32 – Jurisdiction matters: where is the court case taking place? 02:02 – In court, goodwill can greatly impact the outcome of a case For general educational purposes only. See your professional advisors regarding your specific litigation or business situation.