Alimony Award of Intellectual Property Shares Ruled Improper Double Dipping

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A trial court erred in dividing a husband’s intellectual property by ordering him to pay the wife 30 percent of the value of unsold books in addition to royalties from the sale of all books, because the value allocated to the wife was improper double dipping.

The parties were married in 1992, and raised two children. On September 14, 2009, the court rendered judgment dissolving the marriage. The plaintiff husband was not financially successful. The defendant wife earned approximately $75,000 annually. While the plaintiff had little financial assets available, he did receive payments for the sale of a book he published. The plaintiff was ordered to pay the defendant 30% of the value of his unsold books, as well as 30% of all sale proceeds.

The appellate court found that this distribution of the plaintiff’s intellectual property was improper. Proceeds from intellectual property are permissible so long as they are neither “indefinite nor speculative.” Gallo v. Gallo, 184 Conn. 36’38. The trial court divided the plaintiff’s intellectual proceeds by ordering him to pay the defendant a percentage of the value of the unsold book, and then ordered him to pay the defendant in the form of royalties from the sale of all of the books. While the court was within its authority to assign royalties to the defendant, the additional assignment for the sale of all books was impermissible.

For a free consultation, please do not hesitate to call the experienced family law and divorce attorneys at Maya Murphy, P.C. in Westport, CT at 203-221-3100. We may also be reached for inquiries by email at JMaya@mayalaw.com.

Source: Lynch v. Lynch, 43 A.3d 667 ; 2012 Conn. App. LEXIS 193 (2012).