Why it is important to distinguish between enterprise goodwill and personal goodwill in divorce valuations?
A) In many states, enterprise goodwill is not considered a marital asset while personal goodwill is.
B) In many states, enterprise goodwill is considered a marital asset while personal goodwill is not.
C) Enterprise goodwill can be valued reasonably, while it is not possible to value personal goodwill.
D) Enterprise goodwill cannot be separately identified, while personal goodwill can be identified.

Question

Quizplus · Accepted Answer

Enterprise goodwill is associated with the business itself and is considered a marital asset subject to division in a divorce, whereas personal goodwill is tied to an individual's personal skills, reputation, or efforts and is generally not divisible in a divorce.

Why It Is Important to Distinguish Between Enterprise Goodwill and Personal