Goodwill
Goodwill is an intangible business asset representing value beyond tangible assets, including reputation, customer relationships, workforce, and market position. In real estate, goodwill must be valued separately from the property for tax, financing, and legal purposes.
Components
- Business reputation and brand recognition
- Customer relationships and loyalty
- Trained and assembled workforce
- Favorable location and market position
- Proprietary processes and intellectual property
- Established supplier relationships
Valuation Methods
- Excess earnings: Earnings above fair return on tangible assets
- Market approach: Comparable business sales
- Income approach: Discounted future earnings
- Formula approach: Industry rules of thumb
Florida Divorce
Enterprise goodwill (business value) is divisible as marital property. Personal goodwill (individual reputation) is not divisible. Courts must distinguish between the two.
Related Terms
- Equity — Business equity including goodwill
- Contract — Business sale agreements
- Encumbrance — Liens on business assets
Barnes Walker Business Law
Barnes Walker's attorneys value goodwill for Florida business sales, property tax appeals, and divorce proceedings. Request a legal inquiry for assistance.
Florida Law Reference
Fla. Stat. Ch. 732
Governs the execution requirements for valid wills in Florida, intestate succession, the elective share, and the rights of pretermitted spouses and children.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC