When you divorce from your spouse, you are probably prepared to divide your assets, finances, debts, and even time with your children with the other person. Yet there are some properties that are not tangible and can end up the focus of a giant post-divorce debate. Among celebrities and civilians alike, the issue of intellectual property sparks arguments and fights among divorcing couples. Intellectual properties can be worth thousands, even millions of dollars. You will want to protect your ideas vigilantly so that your ex-spouse can’t fight for finances that are attached to the carrying out of those ideas.
For example, Michael Douglas and his ex-wife Diandra are now well into their fourteenth year of divorce disputes. This is because in their divorce settlement, Douglas agreed that he would give his ex-wise half of his earnings from the movie Wall Street: Money Never Sleeps. While she received this, their agreement also contained language claiming that Diandra had the right to additional money for any future spinoffs from the movie. In a new movie, there is a character that Michael developed with Diandra’s help. She now claims that she has the right to half of all earnings from the new movie because the character was partially her brain child. If the movie is proven to be a sequel to Wall Street: Money Never Sleeps, then Diandra will get nothing because the court will be able to prove that this was not the stipulation listed in the divorce settlement. If the movie is declared a spinoff, then Diandra will get half.
If you are thinking about divorcing your spouse, you will want to take precautions to protect your intellectual property. If you are an author, songwriter, poet, designer, inventor, business owner, entrepreneur, actor, or any other creative worker, then chances are that you have intellectual property. Anything that you have written or designed is a result of your intellectual properties, and you have the right to protect those properties from others who may want to steal your ideas. There are four main types of intellectual property: trademarks, copyrights, royalties, and patents. Any of these different intellectual assets can be considered marital property, which means that they can be divided during a divorce.
According to Forbes Magazine, the different processes of division among intellectual properties vary from state to state. Normally, it will depend on whether or not your state is a community property state or marital property state. This detail will determine whether or not you have to share your intellectual properties with your spouse. Most courts recognize that the person who invented or created the intellectual property has the right to the creative control of that product. This works in the best interest of both parties. While one person may still be able to control his or her work, the other spouse may still benefit financially.
An ex-spouse can often demand half of all royalty payments, copyrights, or patent payments. This is often considered an additional source of income and therefore it can be divided among couples just as a typical income would be. When you are divorcing, you may want an appraiser to come take a look at your intellectual properties and affix a price to them. If you do no fancy this idea, then you can agree with a spouse that you will divide all royalties or payments connected to the intellectual property on a “go-forward” basis. This means that depending on how much you make you will send about half to your spouse. Talk to a family law attorney to learn more about intellectual property and how to divide this asset when you are splitting from your spouse.