McReath v. McReath

Tracy McReath filed a petition for divorce from Timothy McReath in circuit court. Upon entering the order of divorce, the circuit court divided the marital property and awarded maintenance to Tracy, ordering that Timothy pay Tracy $796,720 to equalize the property division as well as $16,000 per month for twenty years in maintenance. Timothy appealed, arguing that (1) the circuit court erred as a matter of law when it treated Timothy's personal goodwill in his orthodontic practice as divisible property, and (2) the circuit court improperly double counted his personal goodwill in the orthodontic practice when it based Tracy's maintenance award on Timothy's expected future earnings from the orthodontic practice. The court of appeals affirmed, concluding that the personal goodwill was salable and that the circuit court did nor err in its approach in determining the property division and maintenance award. The Supreme Court affirmed, holding (1) the entire value of the salable professional goodwill was properly counted as divisible property in the marital estate, and (2) the circuit court did not double count the professional goodwill from the orthodontic practice in the maintenance award.