1. Personal goodwill can be a contentious and confusing issue in divorce cases, as it is important to differentiate between personal and entity goodwill.
2. There are several factors that affect personal and entity goodwill, such as earning power, reputation, age and health of the professional, work habits, duration of business, referrals diversity, location, size of business, source of new clients, compensation, size of workforce and competition.
3. There are three types of goodwill: entity goodwill, nontransferable personal goodwill and transferable personal goodwill.
The article provides a comprehensive overview of the differences between personal and entity goodwill in valuation engagements. It outlines the definition of goodwill as well as the various factors that affect both types of goodwill. The article also provides an example to illustrate the line between personal and entity goodwill.
The article is generally reliable in its content; however there are some potential biases present in the article which should be noted. For instance, the article does not explore any counterarguments or alternative perspectives on the topic at hand; instead it focuses solely on one side of the argument without providing any opposing views or evidence for them. Additionally, while the article does provide an example to illustrate its points about personal versus entity goodwill, it does not provide any evidence or data to support its claims about how these two types differ from each other. Furthermore, while it mentions that whether personal goodwill can actually be part of marital assets to be divided varies by state, it does not provide any further information on this point or explore how this affects different states differently.
In conclusion, while this article provides a comprehensive overview on understanding and valuing differences between personal and entity goodwills with an example to illustrate its points better; however there are some potential biases present which should be noted when considering its trustworthiness and reliability.