Utah Appellate Court Excludes Personal Goodwill, Disallows Reduction for Taxes on Hypothetical Sale

BVLaw
Court Case Digests
May 11, 2023
4731 Arrangement of Transportation of Freight and Cargo
488999 All Other Support Activities for Transportation
marital dissolution/divorce
goodwill, divorce, personal goodwill, marital estate, deduction, alimony, taxes, trial court

Rothwell v. Rothwell
2023 UT App 50; 2023 Utah App. LEXIS 51; 2023 WL 3360879
US
State Court
Utah
Court of Appeals
Brad Townsend, Daniel Rondeau
Michele M. Christiansen Forster, Ryan D. Tenney, John D. Luthy

Summary

In an appeal of a Utah divorce case, the court affirmed the district court’s determination of value of the husband’s businesses. The district court allowed the exclusion of personal goodwill (in accordance with Utah case law Sorensen v. Sorensen) but did not allow the deduction of estimated tax to be paid on a hypothetical sale of the business at some future date.

See Also

Rothwell v. Rothwell

In an appeal of a Utah divorce case, the court affirmed the district court’s determination of value of the husband’s businesses. The district court allowed the exclusion of personal goodwill (in accordance with Utah case law Sorensen v. Sorensen) but did not allow the deduction of estimated tax to be paid on a hypothetical sale of the business at some future date.

This article also appears in:
Business Valuation UpdateVol. 29 No. 7