Dividing Royalties in Divorce

Dividing royalties in divorce can be one of the most complex aspects of property division, especially when the income comes from books, music, or art that continues to generate earnings long after the marriage ends.

For couples with creative works—like books, music, or art—royalties can be one of the trickiest assets to divide. Unlike a car or a bank account, royalties generate ongoing income, sometimes long after the divorce is finalized. So, who gets the money when one spouse has a stream of royalty payments?

What Are Royalties in a Divorce?

Royalties are payments earned from the use of intellectual property—whether it’s a novel, a hit song, or a piece of artwork. They can continue for years, and in some cases, for the life of the creator plus decades beyond (especially in copyright law). When a couple divorces, these royalties are treated as income-producing assets, which means they can be subject to division depending on when and how they were created.

Community Property vs. Equitable Distribution

How royalties are divided often depends on the divorce laws in your state:

• Community Property States (like California or Texas): Any royalties earned during the marriage are typically considered marital property, even if only one spouse created the work. Future royalties tied to works created during the marriage may also be split.
• Equitable Distribution States: Courts divide property in a way that is considered fair, not necessarily equal. A spouse who did not directly create the work might still be entitled to a share of royalties, especially if they contributed to the creator’s career by providing financial or emotional support.

Key Factors Courts Consider

When determining how royalties should be divided, courts look at:

1. When the work was created – If the book, song, or art was made before the marriage, it may be considered separate property.
2. Royalties earned during marriage – Income from intellectual property produced during the marriage is usually considered marital property.
3. Contribution of the non-creator spouse – Did one spouse support the household so the other could write or compose? Courts may factor that in.
4. Future income potential – Unlike a one-time payment, royalties can provide ongoing income, so courts often include provisions for future royalties in the divorce settlement.

Examples of Royalties in Divorce Cases

• Books: If an author wrote a novel during the marriage and it continues to sell, royalties may be shared. If the book was written before marriage but marketed during marriage, the income division may be more complex.
• Music: Songwriters, performers, and producers often earn royalties from streaming, radio, and licensing. Courts may divide these if the work was created during the marriage.
• Art: Visual artists may receive royalties from resales or licensing their work for commercial use. These are also subject to division if tied to marital effort.

Protecting Your Royalties in Divorce

If you are a creator—or married to one—there are ways to clarify rights in case of divorce:

• Prenuptial or postnuptial agreements can specifically address ownership of royalties.
• Detailed divorce settlements should spell out how royalties will be shared or assigned to avoid future disputes.
• Expert valuations may be necessary to estimate the long-term worth of intellectual property.

Dividing royalties in divorce is rarely straightforward. Unlike physical property, royalties represent a future stream of income that can last a lifetime. For creators, protecting intellectual property rights is crucial. For non-creator spouses, recognizing their contribution to the success of the work is equally important. Working with an experienced family law attorney is the best way to ensure that royalty income is divided fairly and in accordance with state law.