Section 21.12 Value of Services, Including Goodwill in Professional Practices

• Library: Family Law Deskbook and 2014 Supp

4. (§21.12) Value of Services, Including Goodwill in Professional Practices

Two cases that have had a significant effect on the valuation of professional practices are Hanson v. Hanson, 738 S.W.2d 429 (Mo. banc 1987), and Taylor v. Taylor, 736 S.W.2d 388 (Mo. banc 1987).

In Hanson, the Supreme Court of Missouri held “that goodwill in a professional practice acquired during a marriage is marital property subject to division in a dissolution of marriage proceeding.” Hanson, 738 S.W.2d at 434. The Court rejected the use of capitalization formulae, stating that:

as a matter of proof, the existence of goodwill is shown only when there is evidence of a recent actual sale of a similarly situated professional practice, an offer to purchase such a practice, or expert testimony and testimony of...