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In Maryland, the value of a business interest acquired during the marriage
is considered marital property, even if it is owned and operated by only
one spouse.
Upon divorce, the Court must determine the “fair market value” of a
spouse’s business interest, which is what a willing buyer would pay a
willing seller, neither being under the compulsion to act and both
having reasonable knowledge of all relevant facts.
However, a spouse’s “personal goodwill” in the business is their
non-marital property, not subject to equitable distribution by the
Court. “Personal goodwill” is the part the business value which is
directly attributable to the reputation and success of the spouse owner.
Business valuation in divorce is a complex issue in divorce cases, often
requiring forensic analysis of business records and expert testimony.
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