By: WISCONSIN LAW JOURNAL STAFF//July 12, 2011//
Family
Marital property; professional goodwill
The entire value of salable professional goodwill is divisible property in the marital estate.
“In accordance with previous Wisconsin case law, we conclude today that when valuing a business interest that is part of the marital estate for purposes of divorce, a circuit court shall include the value of the salable professional goodwill attendant to the business interest. In addition to the above discussed case law, this conclusion is supported by Wis. Stat. § 767.61 and the policy considerations behind § 767.61.”
“First, while Wis. Stat. § 767.61(2) excludes specific property from the marital estate, professional goodwill is not listed therein. Moreover, under § 767.61(3), we presume that the marital estate should be divided equally. As aforementioned, the presumption of equal division recognizes the contributions of each spouse to the marriage, including a homemaker spouse’s lost earning capacity from being out of the job market. Where the salable professional goodwill is developed during the marriage, it defies the presumption of equality to exclude it from the divisible marital estate. As one court has explained: [T]he wife, by virtue of her position of wife, made to that [goodwill] value the same contribution as does a wife to any of the husband’s earnings and accumulations during the marriage. She is as much entitled to be recompensed for that contribution as if it were represented by the increased value of stock in a family business. Golden, 75 Cal. Rptr. at 738.”
Affirmed.
2009AP639 McReath v. McReath
Roggensack, J.
Attorneys: For Appellant: Schlichting, Daniel J., Madison; Erlandson, Andrew W., Madison; For Respondent: Auerbach, Richard J., Madison