Intellectual Property in Divorce

Ownership of Intellectual Property

Intellectual property refers to intangible assets resulting from one's creativity or intellectual effort, such as inventions, ideas, or methods, that provide the right to use or derive profits from such property. The four categories of intellectual property include patents, trademarks, copyrights, and trade secrets, and individuals in fields such as science, engineering, architecture, writing, and art are more likely to hold these rights.

Ownership of intellectual property in a divorce case depends on when it was created or obtained. If either spouse creates or obtains intellectual property during the marriage but before the divorce, it is usually considered community property, except in cases where it is excluded by contract or falls under another exception. Any income earned from intellectual property during the marriage is also typically considered community property. Intellectual property that was created before the marriage is usually considered separate property.

In Texas, all community property is subject to division in a divorce, but not necessarily equally. Instead, the court will divide it in a manner that is deemed fair and just. Separate property, on the other hand, remains the sole property of the spouse who owns it.

Valuing Intellectual Property in a Divorce

In the event that intellectual property is categorized as community property, its value must be determined for the purpose of dividing it between the parties, and an experienced divorce attorney can provide assistance in this regard. However, determining the actual value of intellectual property can be challenging, as its value may be speculative in nature. Nonetheless, it is essential to strive for an accurate assessment, given that intellectual property can hold significant worth. Initially, it is necessary to identify any other parties who may have a claim to the property, the duration of its property rights, whether royalties are being received for its use, and if any further investment is required to maximize its potential value.

There are various methods to evaluate the value of intellectual property in a divorce, including fair market value, income or future income value, and the owner's valuation of the property. Once the parties reach a consensus regarding its value and the court determines how the value should be split, the spouse responsible for creating or acquiring the intellectual property may argue that they should retain creative control over the property following the divorce.

Speak with an Experienced Divorce Attorney

Achieving a fair distribution of complex assets in a divorce necessitates obtaining a precise valuation of any tangible or intangible property involved. If you or your spouse possess intellectual property, it is crucial to consult with a legal professional to determine whether you have entitlement to its value in a divorce settlement. At Wilson Whitaker Rynell, we are dedicated to advocating for a resolution that you deem equitable. Our firm represents clients in divorce cases in various Texas cities, including Dallas, Austin, Houston, Fort Worth, and all cities within Dallas County, Tarrant County, Collin County, and Denton County.