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What is a High-Value Divorce?
A high-net-worth divorce is a particular type of divorce where one or both spouses have significant investments, assets, and property. Lawyers from a law firm in New York explain that high-value divorce differs from other typical divorce cases because it entails dealing with complex estates and high-value assets such as:
- High-value real estate
- Stocks
- Luxury items
- Art collections
- Antiques
- Boats or yachts.
These assets make the divorce process longer and more complicated as the spouses must determine how to split the assets equitably. Large amounts of spousal and child support are also involved, highlighting the importance of hiring skilled legal experts to value the properties and investments during divorce accurately.
What is Intellectual Property in a Divorce?
Divorce can become complex when it involves tangible assets, such as vehicles and real estate, or intangible ones, such as intellectual property (IP). Intellectual property comprises any original creation, such as a book, music, or software. Generally, IPs are classified as patents, copyrights, trade secrets, and trademarks.
The law considered IPs community property as long as they were created during the marriage. They could be subject to equitable distribution in property division during a divorce. If you’re concerned about what will happen to your IPs during a divorce, consult skilled divorce lawyers in Yonkers for strategies to protect your intellectual property.
Can I Protect My IP During a Divorce?
While you may be prepared to split other assets like real estate and bank accounts during a divorce, you may not be aware that even your intellectual property is vulnerable to distribution. Losing the rights to your creations can be devastating. Nonetheless, various circumstances determine what will happen to any IP you own.
If you and your spouse can’t agree on the distribution of the IPs, the courts will step in to determine the outcome. The legal guidance and representation of skilled Yonkers divorce lawyers can work to your advantage. They can help you implement the following strategies to protect the intellectual property you created:
Prenuptial and Postnuptial Agreements
One of the most straightforward ways to protect your assets, including IPs, is to create a prenuptial or postnuptial agreement. These agreements are also known as partition agreements and are legally binding. They specify the assets that remain separate and the ones subject to division in case of a divorce.
Professional Valuation
Knowing how much your IPs are worth is crucial in fighting for a fair distribution during a divorce. You want to avoid discovering that your spouse unfairly got a more significant share of something you created from scratch. With a value in mind, you can make an informed decision or fight aggressively to protect your interests during divorce.
Property valuation can be a complex affair. First, the valuation date plays a crucial role. It can substantially affect the amount you give or receive due to any value fluctuations while the case is ongoing. In New York, the valuation date must be between the date you file for divorce and the trial date, based on what is equitable.
Once you do the valuation, the next step would be determining what percentage of that value should be distributed to each spouse. Divorce lawyers in Yonkers highlight that some factors that affect the outcome are:
- Each spouse’s contribution to the acquisition of the IP
- The value and marketability of the IP
- The tax consequences of a proposed disposition of the asset
Storage and Appraisal
Proper storage of your IP documents is an effective way to protect them during a contentious divorce. Secure file-sharing programs and password-protected documents are some protection measures you should incorporate. Remember to back up all documents regularly and keep current hard copies well-secured in a safe deposit box.
It would also help to have your IPS independently appraised. An appraisal will provide a truthful assessment of the IPs’ value, laying a solid foundation for license negotiations and transfers that might be necessary in the future. Divorce attorneys in Yonkers add that appraisals can be helpful in many potential litigation scenarios.
Documentation
It’s crucial to properly document your intellectual property’s ownership, including specific parts of the IP that may be someone else’s contribution. Ensure to capture the dates of the contribution. With the help of skilled lawyers, you can create non-disclosure agreements to prevent sharing confidential information during and after the divorce proceedings.
It’s also advisable to create official documents declaring the principal manager and creator of the IP. If your spouse helped the IP grow, you must document that information to minimize future conflicts.
Timing is Important
Yonkers divorce lawyers advise completing any agreements on the division of jointly created IPs before initiating the divorce proceedings.
Without established agreements, it will be up to the court to determine the division of the assets, which can sometimes lead to unfair outcomes. Your lawyers can help you draft the agreements.
An Experienced Divorce Attorney Helping You Protect Your IPs in a High-Value Divorce
Having to divide your intellectual properties between you and your spouse during a divorce can be emotionally taxing, mainly if you worked on the assets by yourself. Negotiating a fair distribution can be complex, so enlist the help of experienced divorce attorneys in New York for legal assistance.
The Law Offices of Joseph A. Marra, PLLC, hosts skilled divorce lawyers in Yonkers. We can work on your case to protect your assets, including intellectual property. No matter how complex the case seems, we know how to navigate divorce and property division laws and will fight for a fair outcome. Call us at 914-344-5145 to schedule a case assessment.