Divorces involving significant assets can be complex. If you are a creative professional or entrepreneur with intellectual properties, patents or royalties, you know how complicated things can get.
What are royalties and residuals?
Royalties and residuals are ongoing payments for intellectual properties such as books, screenplays, music, art, trademarks and patents. Their value can fluctuate over time, making them difficult to assess and divide.
How do courts divide these assets?
In New York, the court tries to divide marital property fairly, but not necessarily equally. Royalties and residuals can make this process tricky. Here is how it generally applies:
- Marital vs. separate property: If you earned royalties and residuals during the marriage, the court might consider them marital property and divide them. If you earned them before the marriage, they might be yours alone.
- Future income: The court will consider future royalties and residuals earned during the marriage as shared property. Experts can help determine an accurate valuation of potential future income.
- Contribution: The court will consider how both spouses contributed to the creative work, including emotional support and caregiving.
Understanding these principles can help you divide your assets fairly in your divorce.
Protecting your interests
Divorce involving substantial wealth demands a careful planning. With the right legal guidance, you can manage the process, protect your interests and emerge stronger on the other side.
At The Law Firm of Poppe & Associates, PLLC, our focus is relentless advocacy for our clients. If you or someone you know is considering divorce, reach out to schedule a consultation at 646-665-3903 or by contacting us online.
Let Me Be Your Brave
Mia Poppe, Esq.
Managing Partner