Business Goodwill and the Effect on Value
Stowe v. Stowe, ___ N.C. App. ___ (2020).
In North Carolina, Equitable Distribution (ED) is one of the mechanisms by which former spouses separate their personal and real property. What if the during the marriage one party opens a business? Unlike other forms of property, businesses have reputations that are carefully cultivated, as well as patrons and other intangibles that make the business more valuable than what can be accounted for on paper. Courts call this factor Goodwill. In the case below, we explore how one court handled Goodwill for an insurance company. Continue reading →