The recently published Fall 2022 Family Law Newsletter assesses how the sale of a business can impact the division of marital assets as part of a divorce.
A recent appeals court ruling in South Carolina determined that the proceeds from the sale of a dental practice – the value of which was primarily based on the business goodwill of the practice and not the husband dentist personally – had to be split equally between the spouses. The court found that the enterprise goodwill was a marital asset, as compared to personal goodwill which belongs only to an individual and is not part of a marital estate.
The ruling strongly suggests that for any sale proceeds to be based on personal goodwill, an individual must maintain some active role in a business after a sale.
The Fall 2022 newsletter, published by partner Gary Owen Todd, addresses other important Family Law issues, including the challenges of valuing, finding, and dividing cryptocurrency in divorce cases, and how virtual court proceedings can sometimes violate the due process rights of parties.
Mr. Todd, a Founding Partner at the firm, is recognized locally and nationally as a preeminent family law attorney concentrating on domestic relations and probate litigation. He has successfully negotiated, mediated, and tried numerous family law issues at the trial court and appellate levels.