The rise of New Jersey tech startups and creative industries has brought intellectual property rights to the forefront of many divorce cases. These valuable assets, from software innovations to artistic works, need careful review during property division.
What counts as intellectual property in divorce?
Intellectual property (IP) includes patents, copyrights, trademarks and trade secrets. New Jersey courts consider when these assets were created to decide whether they belong to the marriage or just one spouse. A patent filed during marriage becomes part of marital property, while one obtained before marriage stays separate unless marital funds help develop it further.
How New Jersey courts split IP assets
Courts in New Jersey focus on fair division rather than equal splits. They look at several key points:
- The exact date when the IP was created
- Money spent from joint accounts on IP development
- Each spouse’s role in creating or growing the IP
- Current and future income from the IP
The court might order:
- Monthly payments from ongoing royalties
- One big payment based on the current value
- Other property trades to balance the split
Getting the correct value for IP takes a special skill. The worth of a patent or trademark can change based on market trends and future sales potential. Many couples need help from experts who know both IP law and asset valuation.
Some IP rights last decades and can earn money long after divorce. This makes it vital to write clear agreements about future earnings. A spouse might deserve part of the royalties even years later if they helped create or support the IP during marriage.
Whether you own IP or your spouse does, these assets need careful attention in divorce. Their long-term value and complex nature often require legal guidance to protect your interests. Consider talking to a lawyer to help ensure you get a fair outcome.
