Walsh and the Problem of Professional Goodwill Walsh v. Walsh (Ariz App. 2012) FACTS = At divorce, wife is seeking share of professional goodwill from husband, the shareholder in the national law firm. The wife's expert valued goodwill at over $1 million. At divorce, the wife was seeking the share of her extremely successful husband, who was a lawyer and a shareholder at a national law firm. He made a lot of money on an annual basis. She is arguing he is going to walk away with this professional reputation and the ability to make a lot of money in the future and she contributed to that by helping him succeed in his professional world. Therefore, she wanted her share of his professional goodwill. D PROCEDURAL HISTORY = Trial court awarded $140,000 as only realizable benefit from law practice, the stock redemption value in husband's shareholder agreement. The trial court didn't want to give wife share of husband's speculative and non-marketable goodwill. The trial court awarded the $140,000 according to the stock redemption plan the husband has signed with his firm. Thus, if he ever pulled out of the firm, the firm would relinquish his stock and the firm would pay him $140,000. The wife expert valued his goodwill at over $1 million dollars, which will put the husband in a good position for years to come. The trial court felt uncomfortable because it's speculative to a large degree what the husband will enjoy in the future. He can't sell it, as it's not a marketable asset. Reversed. The Arizona Court of Appeals reversed according to precedent in the state that are quite receptive to arguments for professional goodwill, which is more receptive than in other states. The court remands this case for the trial court to consider. You can be assured that this will be a battle of experts at the trial court level (when it goes back). This case is where the problem of professional goodwill arises