The trial court erred in determining that the marital estate included the goodwill value of John’s partnership. Like an educational degree, a partner’s theoretical share of a law firm’s goodwill cannot be exchanged on an open market.
Trial court’s determination of goodwill predicated on annual average income before taxes was erroneous. Computation of goodwill should be based on income after taxes, not before.
Because boarding kennel is a commercial business, it is not subject to Holbrook. Trial court may use entire amount set out in cross-purchase agreement to set value, including compensation for professional goodwill.
Where husband’s own expert testified to value of goodwill, court need not decide whether a sole dental practice is distinct from a large law firm as in Holbrook.
Holbrook limited – saleable goodwill of dental practice is divisible.
Valuation of husband’s accounting business reversed – goodwill of a going concern can be a marketable asset.
When valuing a business interest, a circuit court shall include the value of the salable professional goodwill attendant to the business interest.