Marriage of Slater
Court of Appeal of California
160 Cal. Rptr. 686 (1979)
Mrs. Slater (plaintiff) and Mr. Slater (defendant) were married from 1958 to 1975, during which Mr. Slater was a doctor and partner in a medical practice governed by a partnership agreement both spouses had signed. That agreement set a formula for buying out Mr. Slater's interest, including any goodwill, if he died, withdrew, or was expelled. At separation, Mr. Slater had a modest capital account and receivables, and Mrs. Slater's accountant valued his goodwill interest at $44,000, though part of that figure improperly relied on post-separation earnings. Mr. Slater argued the partnership agreement's own terms showed his goodwill had no value. The trial court agreed and found no goodwill value, and Mrs. Slater appealed.
Whether the express terms of a partnership agreement are conclusive as to the value of a partner-spouse's goodwill for purposes of valuing the community's property interest.