In the ever-expanding world of social media influencers, some of the most captivating content comes from married couples who have turned their relationships into brands.
The accounts run the gamut from YouTube yogis to #tradwife TikTokers to Instagram pet parents, families, foodies, fashionistas, health and beauty guides, and wealth advisers. And then there are those attractive, charming, funny, quirky couples—married influencer duos doing life, love, comedy, pranks, travel, kids, home makeovers, and more online together. There are endless topics and influencers for every niche.
According to a recent article in the Wall Street Journal, based on an analysis by The Keller Advisory Group, about 27 million people in the U.S. are paid content creators—they’re making money online through social media; 44% say it’s their full-time job. About half make less than $15k annually, and a third bring in less than $2k. While 13% make over $100k annually as creators, macro-influencers (boasting 100k-1 million followers) earn around $344k annually. Close to 12 million full-time creators bring in a healthy average income of $179k/year.
Influencers make money through direct sales, sponsorships, affiliate marketing, and more. “The big bucks don’t come from views or followers,” explains WSJ. “Brands pay influencers to recommend a product or service to their audience.”
For these digital entrepreneurs, social media accounts are their bread and butter—and sometimes caviar. They can also be very valuable assets for married couples, whether the partners create them together or separately.
When married influencers get divorced, those lucrative social media accounts—digital assets—can become a very complex aspect of property division.
It’s important to remember that in California, a community property state, everything acquired during a marriage (with few exceptions) is considered jointly owned. The court will divide the couple’s assets (and debts) equally in a divorce. This can also apply to the family business—even one partner’s business—if it was launched during the marriage or founded before the marriage but grown and developed during the marriage, with marital resources.
When it comes to social media business, this gets especially tricky. First, the account itself is an intangible that cannot be divided. And it’s not just a question of ownership of the account or even the income it currently brings in, but the potential for future income and what part each spouse has played in the account’s success and earning power.
Appraisal is very challenging.
In a divorce, the court will weigh numerous factors in valuing and dividing a social media account that generates income.
Here are some of the considerations:
- When was the account created? Before or after the date of marriage?
- Did it remain under the sole control of one spouse?
- Did both spouses actively contribute to its success? For example, are they an influencer couple? Or, is one partner the featured “star,” but the other is the photographer, videographer, or editor? Who negotiated brand deals or engaged with followers? Who came up with the ideas for content?
- What revenue streams are generated by the account?
- How is the traffic trending?
- Does the success and brand identity of the account depend on one partner’s personal likeness/star power? Or both? Can the brand continue after the divorce?
Social media success may evolve gradually or explode suddenly, outpacing a couple’s financial planning. A valid prenuptial or postnuptial agreement can help clarify social media ownership and division if the marriage doesn’t survive.
Without such an agreement, dividing influencer accounts and other digital assets may require creative solutions such as a buyout arrangement, a revenue split, or offsetting account ownership by trading another asset. In addition to working with an attorney who is experienced in dealing with complex property divisions, you may need a forensic accountant or business valuation expert to help assess your digital assets.
As with all the significant issues in your divorce, it’s preferable to work together to reach a mutual agreement regarding your social media accounts rather than go to trial. The skilled and caring California family lawyers at SFLG are experienced in handling complex and high-asset divorces and can help you reach the best possible outcome in your dissolution as smoothly as possible, whether through a settlement or litigation.
By Debra Schoenberg
