GOODWILL Flashcards
1
Q
Goodwill
A
Professional goodwill is an intangible asset based upon a business’s reputation and anticipated future value. If professional goodwill is accumulated during marriage, it is characterized as CP. To determine the goodwill’s worth, courts will look to (i) the fair market value of the goodwill or (ii) the business’s excess earnings as a result of its goodwill compared to the average earnings of similar businesses.
