Registered trademarks as an asset in the event of divorce in the equalization of gains

Trademarks as assets in the event of divorce in the community of accrued gains - what you should know

Guest article by lawyer Manuel Kruppe

1. brands as economically valuable assets

Trademarks - whether registered or created through use - are not only legally protected, but also economically relevant. They can represent considerable value, for example through their reputation, their fame or through income from license agreements. As so-called intangible assets, trademarks are therefore generally part of a spouse's assets.

Typical forms of trademark-relevant assets:

Registered trademarks (e.g. at the DPMAEUIPO or WIPO)
Naming rights to companies
Company logos and business designations
License income from brand use

2. why brands are taken into account in the equalization of accrued gains

If spouses live under the statutory matrimonial property regime of community of accrued gains, their assets remain separate - but at the end of the marriage there is an equalization: the person who has gained more assets during the marriage must give half of these gains to the other.

Brands are considered if:

they were created or acquired during the marriage,
they have increased in value in the course of the marriage or
they have generated income, for example through licensing or sales.

Even if only one of the spouses is the owner of the trademark, the increase in value during the marriage can lead to a claim for compensation.

3 How does the equalization of accrued gains actually work?

The following steps are taken as part of the equalization of accrued gains:

Initial assetsAssets at the time of marriage
Final assetsAssets at the time of service of the divorce petition
GainThe difference between the initial and final assets

The spouse with the higher gain must pay the other half of the surplus - even if the increase in assets is based on intangible assets such as a trademark.

4. valuation of trademarks in divorce proceedings

As brands are not traditional assets, their valuation is particularly challenging. An expert valuation is essential in most cases. Valuations include

Brand awareness and market position
Income from use or licensing
Future market potential
Investments in building and maintaining the brand

Key date for the valuation is usually the date of service of the divorce petition.

5 Who gets the trademark after the divorce?

In principle, the trademark remains the property of the registered owner - there is no direct division of the trademark. The non-owning spouse does not receive a share in the trademark itself, but only financial compensation via the equalization of accrued gains.

Special case of shared use:
If both spouses have worked on the trademark together or used it commercially (e.g. as part of a family business), there may be further claims or even co-ownership. The exact contractual and factual circumstances are decisive here.

Tip: The equalization of accrued gains procedure can also be carried out in isolation up to three years after the divorce has become final.

6 What should spouses do specifically?

For brand owners:

Document the creation and development of the brand.
Keep careful records of all contracts, investments and license income.
Have the value of the brand estimated at an early stage.

For non-owning spouses:

Secure evidence of your involvement (e.g. working in the business, brand management).
Request information on the commercial use of the trademark.
Insist on an expert assessment.

Conclusion: Trademarks and equalization of gains - underestimated but crucial

Trademark rights can have considerable economic significance in the event of a divorce. Whether you are an entrepreneur, creative person or self-employed: those who do not leave the valuation of their trademark to chance protect their assets - or secure justified compensation claims.

Seek legal advice in good time. This is the only way to ensure that your trademark does not become a matter of dispute, but instead is incorporated into the property settlement in a targeted manner.

About the author:
Lawyer Manuel Kruppe specializes in family law and is an expert in the division of assets in the context of divorces. His modern law firm handles divorces nationwide without any complications and without the need for a visit to the office. More at www.jetzt-scheiden-lassen.de