Time for a Reassessment of Personal Goodwill in Divorce Cases?

Business litigation and family law partner Drew Soshnick authored an article for the Indiana Lawyer titled “Time for a reassessment of personal goodwill in divorce cases?” that provides insights on personal goodwill and enterprise goodwill in divorce proceedings. 

Soshnick writes that the Indiana Supreme Court distinguished personal and enterprise goodwill in Yoon v. Yoon, holding that goodwill is “the value of a business or practice that exceeds the combined value of the net assets used in the business." Personal goodwill, the supreme court observed, "represents nothing more than the future earning capacity of the individual and is not divisible." Conversely, enterprise goodwill, according to the supreme court, is "the intangible, but generally marketable, existence in business of established relations with employees, customers and suppliers." While other states such as Wisconsin and Florida have adopted different standards for goodwill in divorce proceedings, Soshnick notes that Indiana’s standards are unlikely to – and shouldn’t – change. 

“As the Indiana Supreme Court in Yoon declared: ‘The goal in dissolution, however, is not to value the business (including the professional) for a buyer. Rather, it is to identify the portion of the value that is attributable to the business without the professional's continuing participation.’ No reassessment is needed. Indiana got it right the first time and still has it right in 2025,” Soshnick writes. 

The full article is available to Indiana Lawyer subscribers.