Royalties are payments artists and creators may receive when others use their intellectual property such as books, songs, scripts, patents and other protected works. Will these streams of revenue be subject to division during divorce?
Well, the answer largely depends on timing and whether or not the artist had a prenup in place.
When were the intellectual property rights acquired?
In Ohio divorce cases, the law views properties differently depending on when a spouse acquired them. This timing usually creates two distinct scenarios.
Before marriage
Ohio law usually considers the properties or wealth that an artist acquired before marriage, including royalties, as separate property. As a result, an Ohio court may exclude the royalty earnings from the division. Further, the court may consider the royalties earned from premarital intellectual property during the marriage as separate property too.
After marriage
Because Ohio follows equitable distribution law, the state deems any property or wealth a spouse acquires during the marriage as marital property. Similarly, if an artist created or acquired the intellectual property during the marriage, the court may treat the associated royalty rights as marital property and divide them among the couple.
What if the artist has a prenup?
Spouses generally realize the importance of prenups only during the divorce. An artist who signed a prenup that explicitly excluded royalties from the marital assets can use it in court to protect those royalties. However, disputes may arise over whether the agreement was signed without coercion or included adequate financial disclosure.
Why are royalty cases never simple?
Cases involving royalties are highly complex. They require a detailed understanding of state family law and federal copyright frameworks. An artist who is going through a divorce may benefit from consulting a legal guide who has experience in asset divorce to protect their creative legacy.
