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Introduction: Divorce is a complex legal process that involves the division of assets, liabilities, and often, the resolution of contentious issues. In today's technology-driven world, intellectual property (IP) assets have become increasingly valuable. Intellectual property rights, including copyrights, trademarks, patents, and trade secrets, can play a significant role in a California divorce. This blog post aims to provide a comprehensive guide on how intellectual property rights are handled during divorce proceedings in the state of California. Understanding Intellectual Property Rights: To effectively address intellectual property in a divorce, it's essential to grasp the various types of IP rights. Copyrights protect original creative works, trademarks safeguard brands and logos, patents secure inventions, and trade secrets shield valuable confidential information. Each type of intellectual property carries its own set of rules and considerations. Community Property vs. Separate Property: California is a community property state, which means that marital assets and debts are typically divided equally during a divorce. However, determining whether an intellectual property asset is community property or separate property can be complex. Generally, if the IP was created or acquired during the marriage, it is considered community property. On the other hand, if it was obtained before the marriage or through separate means, it may be deemed separate property. Valuing Intellectual Property: Assigning a value to intellectual property is crucial for equitable asset division. Valuing IP assets can be challenging since their worth often extends beyond tangible assets. Expert opinions from appraisers, forensic accountants, or IP specialists may be necessary to establish an accurate valuation. Factors such as market value, licensing agreements, potential future earnings, and the uniqueness of the intellectual property are taken into consideration. Dividing Intellectual Property: Once the value of intellectual property has been determined, it can be divided in various ways. Couples can opt for a buyout, where one spouse buys out the other's share of the IP. Alternatively, they may choose to divide the future proceeds from the intellectual property's use. In some cases, selling the IP and dividing the proceeds might be the best option. The division method depends on the nature of the intellectual property and the preferences of the parties involved. Protection and Enforcement of Intellectual Property Rights: During a divorce, it's crucial to ensure the protection and enforcement of intellectual property rights. Parties must take necessary measures to prevent infringement or misappropriation of their IP assets. This may involve drafting proper licensing agreements, filing necessary trademark or patent registrations, and securing confidentiality agreements to safeguard trade secrets. Collaborative Approaches and Mediation: Divorcing couples in California have the option to pursue collaborative divorce or mediation to reach agreements on intellectual property rights. These alternative dispute resolution methods allow parties to work together with the help of professionals to find mutually beneficial solutions. By avoiding litigation, couples can maintain privacy, reduce costs, and have more control over the outcome of the IP division. Conclusion: Divorces involving intellectual property rights in California require careful consideration and expert guidance to ensure a fair and equitable resolution. The intricate nature of intellectual property assets necessitates understanding the various types of IP, valuing them accurately, and exploring viable division options. Protecting and enforcing IP rights during a divorce is equally crucial. By leveraging collaborative approaches or mediation, divorcing couples can navigate the complexities of intellectual property rights and strive for a favorable outcome. Disclaimer: This blog post is intended for informational purposes only and should not be construed as legal advice. For specific guidance on intellectual property rights in a California divorce, consult an experienced family law attorney.

Introduction: In the realm of family law, marital dissolution can be a complex and emotionally charged process. When a couple decides to end their marriage, the division of assets and liabilities becomes a critical aspect. In California, where corporations and limited liability companies (LLCs) play a significant role in the business landscape, it becomes essential to understand how these entities are treated during a marital dissolution. This blog post aims to shed light on the intricacies of dividing a corporation or LLC in California, providing a basic understanding of the legal principles at play. Community Property vs. Separate Property: In California, community property laws govern the division of assets during a marital dissolution. Community property generally includes assets acquired by either spouse during the marriage, while separate property encompasses assets acquired before the marriage, through inheritance or gifts. However, it is crucial to note that certain circumstances can blur the lines between community and separate property, especially when it comes to corporations and LLCs. Community Interest in a Corporation or LLC: If a corporation or LLC was formed or acquired during the marriage, it is typically considered community property. Even if only one spouse is actively involved in the business, the other spouse may still have a community interest in it. This means that the value and assets of the corporation or LLC are subject to division during a marital dissolution, unless a prenuptial or postnuptial agreement states otherwise. Valuation of the Corporation or LLC: Determining the value of a corporation or LLC is a crucial step in the division process. Valuation methods such as market analysis, book value assessment, or the use of financial experts can help assign a fair value to the business. The court may consider various factors, including the company's assets, liabilities, income, market conditions, and future prospects. Valuation can be a complex task, often requiring the expertise of professionals specializing in business valuation. Division Options: When it comes to dividing a corporation or LLC, there are several options available, depending on the circumstances and the couple's preferences: Buyout: One spouse can buy out the other spouse's community interest in the business by compensating them with other assets of equivalent value, such as cash, real estate, or investments. Co-ownership: In some cases, the couple may choose to continue co-owning the corporation or LLC even after the dissolution. This arrangement requires careful consideration, as it may lead to ongoing conflicts and challenges in decision-making. Sale or liquidation: If neither spouse wishes to retain ownership, the corporation or LLC can be sold, and the proceeds divided between them. Protecting Your Interests: Navigating the division of a corporation or LLC during a marital dissolution can be complex and emotionally charged. It is crucial to seek the guidance of experienced family law attorneys who specialize in business matters. An attorney can help protect your interests, negotiate fair settlements, and ensure compliance with California's legal requirements. Conclusion: Dividing a corporation or LLC during a marital dissolution in California can present unique challenges. Understanding the distinction between community and separate property, determining the value of the business, and exploring various division options are essential steps in this process. By seeking professional legal guidance, you can navigate the complexities of the law, protect your interests, and work towards a fair resolution that allows for a smooth transition into the next chapter of your life.

For those unfamiliar, the Writers’ Guild of America (WGA) – the collective bargaining union organized by and for film and television writers – is currently on strike against the Alliance of Motion Picture and Television Producers (AMPTP), which is the collective bargaining entity comprised of those producers and distributors who hire the writers and profit from their work. The strike began on May 2nd and there has been virtually no news of any progress on the parties’ negotiations. That being the case, it seemed a good time to start a deep-dive series on the strike and the circumstances surrounding it. This first installment is about getting our bearings. We should start by clarifying, there actually isn’t “a” WGA. The WGA West is based in Los Angeles and has around 20,000 members, while the WGA East is based in Manhattan and represents about 5,000 members. While the organizations are administered separately, they negotiate in tandem against the AMPTP. David Young is the WGA West’s executive director and was the lead negotiator in the 2007-08 writers’ strike. He was going to reprise that role but stepped aside for medical reasons in February. His assistant executive director, Ellen Stultzman, was selected as lead negotiator in his stead. Stultzman is regarded not only as an excellent researcher with a firm grasp on the increasingly complex film and TV market, but the ability to clearly communicate her insights. She was instrumental in writers’ 2019 campaign to end a talent agency practice known as “packaging” – supposedly a way for the agencies to streamline sales of their client-writers’ projects which had the net effect of skimming money from the writers into their own hands – so she has experience in staking out and defending difficult positions. Stultzman’s decision making will be guided by a 24-member negotiating committee co-chaired by David A. Goodman and Chris Keyser, who are both longtime writers and showrunners in addition to being current and past presidents (respectively) of the WGA West. The AMPTP encompasses roughly 350 companies. Many of these member companies are smaller producers. However, the major studios (Disney, Warner Bros. Discovery, Paramount, Universal, and Sony/Columbia), networks (ABC, CBS, Fox, NBC) and streaming service providers (including Netflix, Amazon, Apple TV+, etc.) are also represented. They are also the ones who largely set the tone and strategy for the AMPTP’s negotiations. Tasked with executing that strategy is AMPTP president and lead negotiator Carol Lombardini, who assumed the presidency in 2009 after acting as the AMPTP’s number two negotiator during 2007-08 strike. Like the WGA, AMPTP also has a negotiating committee. Unlike the WGA, however, they do not publicize who is on it. Whether or not he is actually on the committee, Warner Bros. Discovery CEO David Zaslav has emerged as a (perhaps the) target of the writers and labor-aligned activists. He says many of the right things publicly (e.g. “For this industry to succeed, everybody needs to feel fully valued,” or “Our objective would be that everybody gets fairly compensated for work they do.” Source), but his pay package is among the richest in the industry. Since taking control of WBD last year, he has also made (or at least overseen) numerous decisions seen as anti-creative (and particularly anti-writer), the most recent of which was an “oversight” that resulted in the Max streaming service no longer crediting creative workers with their individual roles (“Writer,” “Director,” etc.) but listing all the top-line people involved as “Creators” (Source). But what’s driving Zaslav (and other executives) to make these kinds of decisions? We’ll start to dive into that question in more detail in our next installment which will cover “The Numbers.”

Building an estate plan is a process of translation: taking the life you’ve built and translating it into a secure legal structure. At Schauer Law Group, we ensure your legacy—creative, financial, and personal—is protected through a precise, three-part system. PART 1: GATHERING THE PIECES (THE INFORMATION PHASE) The foundation of every secure plan is a clear-eyed look at what you own. We provide our clients with the SLG Private Client Inventory to categorize assets into 16 specific classes. For many of our clients with larger estates, 'thinking of everything' becomes approachable when we break it down into manageable segments: Tangible and Liquid Assets: Real estate, household valuables, vehicles, and standard banking. The Creative Engine: For our creators, we focus specifically on IP and Royalties. This ensures we aren't just protecting 'money,' but the ongoing streams of income generated by your intellectual property. The Goal: This is a high-level 'financial snapshot' used to identify potential probate traps and tax exposure before they become problems. PART 2: ARCHITECTING THE INSTRUMENT (THE ASSEMBLY PHASE) Once the inventory is clear, we design the Trust Instrument. This is the stage where we apply the material terms that govern your legacy. Revocable vs. Irrevocable Trusts: Revocable Living Trust: Offers total flexibility. You can change terms at any time. The primary goal is Probate Avoidance—ensuring your assets pass to heirs privately and immediately. Irrevocable Trust: Often used for advanced Estate Tax Mitigation or asset protection. Transfers are generally permanent but offer significant tax shielding. Key Roles & Provisions: The Trustee: Usually you during your life, with carefully selected Successors chosen for their competence in managing your specific asset types (including IP). The Beneficiaries: Defining who benefits, exactly how much they receive, and the specific timing of distributions. Specialized Provisions: Including 'Boutique' language for the management of royalty streams and licensing rights. PART 3: THE MECHANICAL TRANSFER (TAKING CONTROL) A trust only works if it is 'funded.' This is the process of changing ownership titles from your individual name to your Trust. Here is how we handle the mechanics:

Building an estate plan is a process of translation: taking the life you’ve built and translating it into a secure legal structure. At Schauer Law Group, we ensure your legacy—creative, financial, and personal—is protected through a precise, three-part system. PART 1: GATHERING THE PIECES (THE INFORMATION PHASE) The foundation of every secure plan is a clear-eyed look at what you own. We provide our clients with the SLG Private Client Inventory to categorize assets into 16 specific classes. For many of our clients with larger estates, 'thinking of everything' becomes approachable when we break it down into manageable segments: Tangible and Liquid Assets: Real estate, household valuables, vehicles, and standard banking. The Creative Engine: For our creators, we focus specifically on IP and Royalties. This ensures we aren't just protecting 'money,' but the ongoing streams of income generated by your intellectual property. The Goal: This is a high-level 'financial snapshot' used to identify potential probate traps and tax exposure before they become problems. PART 2: ARCHITECTING THE INSTRUMENT (THE ASSEMBLY PHASE) Once the inventory is clear, we design the Trust Instrument. This is the stage where we apply the material terms that govern your legacy. Revocable vs. Irrevocable Trusts: Revocable Living Trust: Offers total flexibility. You can change terms at any time. The primary goal is Probate Avoidance—ensuring your assets pass to heirs privately and immediately. Irrevocable Trust: Often used for advanced Estate Tax Mitigation or asset protection. Transfers are generally permanent but offer significant tax shielding. Key Roles & Provisions: The Trustee: Usually you during your life, with carefully selected Successors chosen for their competence in managing your specific asset types (including IP). The Beneficiaries: Defining who benefits, exactly how much they receive, and the specific timing of distributions. Specialized Provisions: Including 'Boutique' language for the management of royalty streams and licensing rights. PART 3: THE MECHANICAL TRANSFER (TAKING CONTROL) A trust only works if it is 'funded.' This is the process of changing ownership titles from your individual name to your Trust. Here is how we handle the mechanics: