Living in Florida, married 29 years. Wife has Psychology Practice which she claims has no value other than equipment, furniture, etc. She is one of maybe 4 in area who practice in her area of Psychology. Her practice has a very high reputation for being the person to see. She grosses over $150k but pays taxes on about $40k. My question is, does a psychology practice really have no resale or market value? I've seen examples where medical practices are valued at 100 to 150% of gross earnings. Would that be more realistic?
Allow me to preface my answer to your question with the disclaimer that I am not licensed to practice law in the state of Florida. The question is how the state of Florida would view the "goodwill" that is an asset to her firm (i.e. her reputation). You should at the very least talk to an attorney regarding how the case law views goodwill, and I suggest speaking to a business valuator, just to be sure.