The Fate of Intellectual Property In Divorce

"Intellectual property" refers to things like patents or copyrights, which have the potential to produce future income. When one spouse holds an interest in an item of "intellectual property", the courts see the income from this as marital or community property. Courts generally will consider this income when the assets of the marriage are divided. This can include property settlements and the amounts of alimony and support awards.

Deciding the Value of Intellectual Property

Once it is decided that intellectual property rights are to be included in the marital estate, the courts must determine the value of these assets. They may consider how much the other spouse contributed in the project that created the "intellectual property." This can include financial contributions and debts incurred in the process.

They may also take into account the attitude of the spouse who holds the intellectual property. If the divorce is the result of actions by the owner, or if the owner does not cooperate with the value finding process, the Courts may take this into consideration.

Income Potential of Intellectual Property

Another factor is the income potential from the intellectual property. They may consider the amount of any offers to buy it or how much the intellectual property presently generates. They may also look at the other assets available to divide between the divorcing spouses.

Sometimes the value of an "intellectual property depends on the efforts made to promote it – "personal services "such as advertising and book-keeping. They may consider whether a "personal service agreement" exists when they determine the value. They may also consider how much that the owner must be pay n taxes may insist that the owner pay the taxes on any proceeds before they are shared with the former spouse.

Courts may also consider the time frame during which the intellectual property was developed. Was it developed before the marriage, during or towards the end? In the case, where all the income from intellectual property has been absorbed into the combine resources of the spouses, it will be simply divided equally as property.

Courts generally make determinations on intellectual property on a case to case basis, based on the factors discussed so far. Again it means that there are no consistent outcomes in this situation, as these issues are examined a judge by the courts. This situation can become complex, especially if the fruits of intellectual property is involved in an inheritance.

Copyright of Spouse's Artwork

A common dispute can be the actual possession of a creative product versus the copyright values. A person can remain in possession of an actual work of art, such as painting done by the other. However the painter may retain the right to reproduce the painting, or use it in other ventures.

Some people may present the argument that intellectual property, like an education cannot be "owned" by another. The argument can be countered that creative works do produce an identifiable product that can be assessed for a concrete value.