patent, value and settlement.

I've been separated for a year. I recently applied for a patent. It will take 1 to 2 years to be accepted.

Do I need to report it as an asset ? What is it value at the time of valuation date ? What if it becomes work big $$$ later on ?

Thanks

Legally seperated?

me2 said:

I've been separated for a year. I recently applied for a patent. It will take 1 to 2 years to be accepted.

Do I need to report it as an asset ? What is it value at the time of valuation date ? What if it becomes work big $$$ later on ?

Thanks

Click to expand...

Right now the potential patent has no value, so it would be difficult to report a value for it. However, if you used significant marital funds in developing the invention that you are patenting, then you do have an obligation to include it as an asset....and your spouse's attorney would certainly have something to say if you didn't. Also, if you didn't, and you made significant money from it later, it could be grounds to re-open a property settlement later if it is not disclosed now.

Get yourself a consult with a local attorney to discuss the patent at least, and then consider hiring one based on the results of the consult.

I think that if you spent marital assets developing the invention, then its probably wisest to agree that your wife gets a certain percentage of any profits eventually derived from the patent. An attorney can best advise you what kind of percentage, but I am thinking along the lines of 10-20 percent...depending on how much marital money went into developing invention. If you have children, it also might be possible to get her to agree that instead of her receiving a share of the future profits, that your children will receive a share....perhaps in an irrevokable trust.

One way or another however, it would be cleaner to disclose the potential patent, and settle whether or not she is entitled to a share of any future profits, in the process of the divorce.

Did your spouse support you financially while you worked on the item? Did your spouse pay for parts or the computer you used or other significant parts of the item?

My guess is that the current value of the idea is zero. It could become valuable in the future, or could remain worth nothing, or you could lose a bunch of money trying to market and sell it.

Do you own a company that applied for the patent? If so, was it formed while you and your spouse were living together? S/he may be entitled to half of the company or the commensurate value of it, which again at this time may be zero or something more.

las365 said:

Did your spouse support you financially while you worked on the item? Did your spouse pay for parts or the computer you used or other significant parts of the item?

My guess is that the current value of the idea is zero. It could become valuable in the future, or could remain worth nothing, or you could lose a bunch of money trying to market and sell it.

Do you own a company that applied for the patent? If so, was it formed while you and your spouse were living together? S/he may be entitled to half of the company or the commensurate value of it, which again at this time may be zero or something more.

Click to expand...

Or s/he might be allowed to retain his/her share of the company and benefit accordingly if the patent is successful.

This sort of thing is really not that simple. Which is why he needs a consult with a local attorney.