When you are going through a divorce in Maryland, all marital assets are subject to division. This includes anything that falls under intellectual property. While dividing cash and other assets may be relatively straightforward, other assets like intellectual property can be extremely complicated. This is why you need a skilled Waldorf divorce attorney on your side.

Intellectual Property is an Intangible Asset

Intellectual property encompasses things like a copyright, trademark, or patent. Examples include one spouse writing a book, creating a website, patenting an invention, or selling goods with a unique brand. All of these may be considered intellectual property. If you create a website, you may not necessarily need to file for intellectual property protection for it to have value.

Intellectual property assets may be intangible, but they have value. They can be an invention or a work that comes from the creative expression or knowledge of its owner. When you make an intellectual property application, you are essentially seeking legal recognition of your invention or creative work. Once it is recognized, there is value that needs to be acknowledged in your divorce. Some types of intellectual property do not need an application, while others involve an application and examination. One type of intellectual property that requires an application is a patent.

Intellectual property is considered to be an intangible asset because it does not necessarily exist in a physical form. You need to assign a monetary value to make it divisible in the divorce. Once a value is assigned, then it can be divided just like any other piece of property.

Dividing Intellectual Property in Maryland

When you have intellectual property acquired during the course of your marriage, you will need someone to provide an accurate valuation of the property in question, determine its ownership, decide whether or not it is subject to being divided in the divorce, and then make a determination on how one spouse can compensate the other for the value allocated to the intellectual property.

Offset is the term used to help make things even when assets are being divided in a divorce. Take an example where spouses have decided to split assets equally. If there is intellectual property, then you would divide the assigned value with one spouse taking assets equal to half of the value and the other spouse retaining ownership of the intellectual property and its future rights.

The other option for determining value is to decide on a future royalty rate. This means both spouses would agree to a royalty rate on any potential future returns based on the value of the intellectual property. As an example, both spouses might agree to a 50/50 split of any income the intellectual property generates. Typically, these arrangements will factor in that one spouse will maintain responsibility for the management and monetization of the intellectual property asset. And, this means that spouse may have a higher royalty rate.

Contact a Maryland Family Law Attorney

If you are preparing for a divorce in Maryland, and there is intellectual property involved, you need to speak with a skilled Waldorf divorce lawyer. Contact the Law Office of Robert R. Castro today at 301-870-1200 today to schedule an initial consultation.