Goodwill
The intangible value of a business or professional practice beyond its physical assets, which may be divisible marital property.
Example
The court divided the goodwill of his medical practice accumulated during the marriage.
Jurisdiction Variations
CALIFORNIA
Enterprise Goodwill only
California only divides enterprise/business goodwill; personal/professional goodwill is not marital property
NEW-YORK
Enterprise + Personal Goodwill (enhanced earning capacity)
New York divides both enterprise and personal goodwill, including enhanced earning capacity from licenses/degrees
NEW-JERSEY
Enterprise Goodwill only
New Jersey only divides enterprise goodwill; personal goodwill is excluded
TEXAS
Enterprise Goodwill only (community property)
Texas only recognizes enterprise goodwill as community property
Related Terms
business-valuationprofessional-practicemarital-property