In re Marriage of McTiernan & Dubrow

Summary

The court held that a film director's personal skill and reputation did not create community property goodwill, because goodwill exists only as an asset of a business and the director did not operate one.

What it means for the financial analysis

McTiernan draws the line between a business with goodwill and a person with earning power. The analysis should establish that there is a business whose goodwill can be measured before valuing it.

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