Professional or personal goodwill attaches to the person and does not exist apart from the individual’s skills, rather than the trade or the business due to that person’s professional skill or ability.
As a result, professional goodwill is not considered property and not subject to characterization. Professional goodwill terminates on that person’s death, retirement, or disablement.
Read with Finn v. Finn, there is a two prong test to determine whether goodwill attached to a professional practice is subject to division upon divorce. The goodwill must:
James W. Evans is a board-certified family law attorney and the founder of Evans Family Law Group. With over 25 years of experience, he has built a reputation as a trusted advocate for Texas families navigating divorce, custody, and complex family law matters.
Accolades & Distinctions
This page has been written, edited, and reviewed by a team of legal writers following our comprehensive editorial guidelines. This page was approved by Attorney James Evans, who has more than 20 years of legal experience as a family law attorney.
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