Personal Goodwill in Divorce: Equals Non-Compete?

Here’s an interesting case out of Oregon (Slater v Slater)  that discusses some points regarding the calculation of “Personal Goodwill” in a divorce proceeding.  In short, in this case the trial court ruled in favor of the non-monied spouse, agreeing that the value of personal goodwill would be equal to the value of a non-compete agreement were the business to be sold.


The trial court disagreed, noting that 1) there is no indication that the husband intended to sell his practice, and that 2) there are more components to goodwill than simply the value not to compete.

For those interested its a great read.  The acceptance of the notion of professional goodwill in divorce valuations is a concept that is treated differently in many jurisdictions.  The Slater case provides some insightly analysis of the court’s decision making process in Oregon.