How Is Intellectual Property Divided in a Divorce?
Property division is a challenging part of the divorce process. It is a complex procedure in which marital assets — meaning those possessions acquired by either spouse during the marriage — are accounted for and distributed between the parties. In Illinois, since marital assets are divided fairly instead of equally, it is up to a judge to divide the marital estate as he or she sees fit.
Dividing marital property can become even more complex depending on the value and nature of the assets. Real estate, for example, must be valued and distributed. A family business also must be valued, which is done using one of several approaches. Intellectual property is another asset that can be challenging to divide in a divorce.
This article will discuss what intellectual property is, how it is distributed between divorcing parties, and how to seek the help of an Illinois divorce attorney for the property division process.
What Types of Intellectual Property Are Divided in a Divorce?
Before intellectual property can be divided, it must be valued. The valuation of an intellectual property asset may be different based on its type. Here are a few different types of intellectual property that may be divided in a divorce:
- Trademarks: A trademark is something that represents a business to the public. This can be a logo, symbol, or phrase.
- Patents: The US Patent and Trademark Office issues patents to protect inventions. Someone who owns a patent owns the invention.
- Copyrights: A copyright protects an original work and is perhaps the most common type of intellectual property. Original content such as songs, videos, art, or source codes can be subject to copyright.
- Trade secrets: A trade secret is usually information that is hidden from the public and a key element in a company’s product. The recipe for a popular candy bar, for instance, can be a trade secret.
It is important to note that intellectual property — especially trade secrets — is usually owned by businesses. Companies often purchase intellectual property assets like copyrights and pay royalties to the original creators.
How Is Intellectual Property Divided in a Divorce?
Like most assets, intellectual property that a spouse created before marriage is considered separate property and might not be divided in a divorce. If it was acquired during the marriage, the other spouse is likely entitled to a share.
The first step to dividing intellectual property is determining its value. If the spouse owns the underlying asset, a valuation expert may be required to assess the value of the intellectual property. However, if the spouse does not own the underlying asset but instead receives royalties, those payments are what will likely be divided with the other spouse.
Contact a Kane County, IL Property Division Lawyer
As mentioned, it is up to the judge to determine what share of the asset to award to the other spouse. This is where an experienced lawyer is key to protecting your assets. A Batavia, IL property division attorney can help persuade the judge to award you your fair share of the marital property. At [[title]], we use effective methods and excellent legal representation to protect our clients’ assets. Schedule a free consultation with an experienced attorney by calling 630-879-9090 today.
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