Divorce can impact every area of your life, including the ownership and control of your intellectual property (IP). If you are an entrepreneur who is going through a high-asset divorce, you need to know how to protect your intellectual property rights.
Identifying IP assets
First, you need to clearly identify all your IP assets. Whether you have patents, copyrights, trademarks, trade secrets, or any other kind of intellectual property in your name, you will have to provide documentation to prove when you developed each one. This is necessary for determining how the courts should divide the IP.
Under Alabama law, any IP that you or your spouse created before your marriage will usually remain with the original owner. Any IP developed during the marriage may constitute marital property and will be subject to division according to state law.
Valuing intellectual property
Valuing intellectual property can be complex. IP valuation requires not just a current valuation but also an assessment of potential future earnings. You may want to hire a professional IP valuator to ensure your IP assets are appropriately appraised.
Negotiating a fair IP division
Negotiating a fair division of intellectual property requires careful strategic planning. Start by identifying which of your intellectual properties are most important to your business or personal ambitions.
Sometimes, it is better to seek full rights to the assets you deem most critical and let go of less important ones. Your divorce attorney can advise you on the best strategy for your specific scenario.
