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Is your spouse entitled to software in the divorce?

On Behalf of | Jun 28, 2022 | Divorce

When you’re going through a divorce, you should know that a portion of your assets will likely be divided. If you have created software or run your own software company from home, you need to be aware that a portion of that business could be subject to division, too, if it falls into the category of martial property.

Imagine this scenario: You and your spouse worked on a piece of software together. Then, you released it and make regular earnings from its sales. During your divorce, that property would be subject to division, because it is something you did while married and is also a part of your earnings.

Alternatively, imagine creating a piece of software before marriage. You are in the position where you earn residuals from the software, but you didn’t develop it during the marriage. In this case, only your earnings could be considered as a factor during the divorce—the software itself may not be marital property.

Technology is a complicated concept in some divorces

It can sometimes be hard to figure out if your technology, ideas or creations are subject to division in divorce, but if this is a product you created or a business you started during your marriage, you should be prepared for the court to see it as shared property.

California is a community property state as well, which means that the court generally wants to see you divide the value of your property equally between yourself and your spouse. While that’s usually the place you start during negotiations, you may be able to negotiate a different arrangement, such as a 60-40 split, if your spouse is willing to do so.

Every divorce is different, so you need the best insight into your rights

Your divorce isn’t going to be the same as anyone else’s. You need the right support to help you determine which assets are separate or shared, so you can figure out how to protect the items or belongings that are most important to you in your life. Negotiating is an option, or you may need to build a case to keep assets and take that case to court.