Appellate Court Upholds Decision to Use Income Approach and Reduce Personal Goodwill

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Court Case Digests
July 30, 2021

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marital dissolution/divorce
goodwill, enterprise goodwill, income approach, personal goodwill, asset approach, marital asset, alimony
Cela v. Cela
2021 Tenn. App. LEXIS 304, 2021 WL 3240238
US
State Court
Tennessee
Court of Appeals
Michael Wallace (Wife), Joshua Hedrick (Husband)
Davis

Summary

The Appellate Court (AC) upheld the trial court’s decision to accept the value under the income approach adjusted for the exclusion of personal goodwill. The expert for the wife (business owner) had used the asset approach reasoning that all goodwill was personal. The trial court and the AC rejected that approach.

See Also

Cela v. Cela

Full Text of Court Cases
July 30, 2021

The Appellate Court (AC) upheld the trial court’s decision to accept the value under the income approach adjusted for the exclusion of personal goodwill. The expert for the wife (business owner) had used the asset approach reasoning that all goodwill was personal. The trial court and the AC rejected that approach.