CALIFORNIA FAMILY LAW
...Business Interests
......Goodwill
.........Valuation Methods
............Fair Market Value/Sale
 11 Cards On This Topic:
  • Fair market value defined.
  • Fair Market Value standard of value should only be used for marketable assets, not for nonmarketable assets.
  • If medical practice produces "excess earnings", then it has a "goodwill" value, whether or not practice is salable.
  • May not value goodwill by (1) assuming all clients will cancel contracts or (2) by assuming business could not be sold.
  • Court may consider FMV of goodwill of business.
  • Award of business' goodwill to H for $15,000 affirmed, despite no sales value.
  • Goodwill in dissolution may be greater than FMV of goodwill, if business sold.
  • Value of goodwill not necessarily what buyer would pay to acquire.
  • Goodwill is market value for which goodwill of practice could be sold.
  • Goodwill is usually higher where owner remains active in business.
  • Under specified conditions, lawyer may legally and ethically sell goodwill of practice.


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