How Does Texas Divide Intellectual Property in a Divorce?

 Posted on July 11, 2025 in Complex Property Litigation

Asset division during divorce can be complicated, especially when dealing with assets like intellectual property. Many people fail to realize that their creative works, inventions, and business ideas could be subject to division. Understanding how Texas law treats these sometimes highly valuable assets is important. An experienced Austin, TX divorce attorney can help you through the process.

What Are Intellectual Property Assets?

Intellectual property, often called IP, includes creations of the mind that have value and can be legally protected. These assets can generate income or grow in value over time. Common examples of intellectual property include copyrights, trademarks, patents, and trade secrets. For example, a spouse who writes music, designs software, invents a product, or owns a business logo might have valuable intellectual property interests. Even if the intellectual property is not producing income yet, it could become a significant asset in the future.

Is Intellectual Property Marital or Separate Property in Texas?

Under Texas Family Code § 3.001, property owned before marriage or received as a gift or inheritance is separate property. The law also states that property acquired during the marriage belongs to both spouses, meaning it is community property, and is to be divided equally. Whether intellectual property is community or separate depends on when it was created or acquired, how it was funded or developed, and whether it was mixed with marital property.

For example, if one spouse wrote a book before marriage, that book is typically separate property. However, if they wrote it during the marriage, it may be community property, even if only one spouse did the work. Even if intellectual property is separate, any income it generates during the marriage could be community property under § 3.002.

How Do You Value Shared Intellectual Property To Divide It?

Valuing intellectual property can be challenging because it involves predicting future income or market demand. However, courts need this valuation to make a fair division of marital property. Under Texas Family Code § 7.001, courts must divide community property in a way that is just and right, considering both spouses’ circumstances.

Texas courts rely on expert appraisers to determine the fair market value of intellectual property. They consider factors like current and future income generation, market demand, and development costs. While the property itself may not be physically divided, its financial value is considered when dividing the marital estate.

In practice, the judge might award the asset to you while requiring you to pay your spouse for their share. In some cases, you both continue to share ownership. However, this can be complicated if you no longer get along. Alternatively, the court may offset the value of the asset by awarding other marital property to balance the division. No two cases with intellectual property are exactly alike, and several factors can complicate decisions about how to divide these assets. Having the support of a knowledgeable legal representative makes a significant difference.

Schedule a Consultation With a Travis County, TX Divorce Lawyer Today

If you have intellectual property, especially if it is connected to your career or business, speak with the experienced Austin, TX family law attorneys at Powers Kerr & Rashidi, PLLC about how to protect your claim to it in divorce. Intellectual property can be one of the most valuable parts of a marital estate, and we often handle cases with complex assets. Call us today at 512-610-6199 to schedule a consultation and discuss how we can help.