Podcasts > Money Rehab with Nicole Lapin > Who Gets Custody of the Instagram? The Money Trail of Influencer Divorces with Jackie Combs

Who Gets Custody of the Instagram? The Money Trail of Influencer Divorces with Jackie Combs

By Money News Network

In this episode of Money Rehab, Nicole Lapin and attorney Jackie Combs discuss how influencers and content creators can protect their digital assets during marriage and divorce. The conversation covers the role of prenuptial agreements in safeguarding intellectual property, brand value, and revenue streams, as well as the importance of hiring business appraisers to properly value digital assets.

Using real-world examples like the divorce of influencers Kat and Mike Stickler, Lapin and Combs examine how courts handle the division of digital platforms and social media accounts. They explore the distinctions between separate and community property in digital assets, and discuss how confidentiality agreements can protect both parties' reputations and earning potential during and after divorce proceedings.

Who Gets Custody of the Instagram? The Money Trail of Influencer Divorces with Jackie Combs

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Who Gets Custody of the Instagram? The Money Trail of Influencer Divorces with Jackie Combs

1-Page Summary

Prenups and Postnups For Influencers and Content Creators

In a detailed discussion, Jackie Combs and Nicole Lapin explore the unique legal considerations influencers and content creators face when protecting their digital assets in marriage and divorce.

Protecting Digital Assets and Brand Value

Combs emphasizes that influencers must treat their online presence as a legitimate business, protecting their intellectual property, endorsements, and revenue streams through prenuptial agreements. She advises hiring business appraisers to value these unique digital assets, considering not just current worth but future growth potential. The agreements should include confidentiality clauses to prevent spouses from monetizing relationship details or damaging the influencer's brand through media appearances.

Dividing Digital Assets and Intellectual Property In Divorce

Lapin and Combs discuss how courts handle digital assets in divorce proceedings, using the case of influencers Kat and Mike Stickler as an example. They explain that courts treat digital platforms as business assets, dividing them between separate and community property. Assets created before marriage are typically considered separate property, while those obtained during marriage are community property, unless specified otherwise in a prenup.

The complexity of these divisions is highlighted in cases where one spouse continues to grow the brand post-divorce. For instance, when Kat Stickler's TikTok following grew to over 10 million after divorce, it demonstrated how ongoing effort by one spouse can affect future income distribution.

Combs details how celebrities and influencers require special consideration during divorce proceedings due to their public status. She recommends using mediation and private judges to maintain privacy and minimize public exposure. Confidentiality clauses in divorce agreements are crucial to prevent spouses from making public comments or monetizing divorce details.

The discussion concludes with Combs highlighting the importance of financial protection provisions in prenuptial and postnuptial agreements, noting that while some clauses (like those based on infidelity) might not be enforceable, focusing on legally viable provisions is essential for protecting both reputation and earning capacity.

1-Page Summary

Additional Materials

Counterarguments

  • While treating an online presence as a legitimate business is prudent, not all influencers may have the scale or revenue to justify the complexity and cost of prenuptial agreements.
  • The valuation of digital assets can be highly speculative and may not always accurately predict future growth, leading to potential disputes over their worth.
  • Confidentiality clauses, while protective, could potentially be seen as limiting freedom of speech and may not always hold up in court if public interest is deemed higher.
  • The division of digital assets as community property may not always reflect the individual effort put into the asset by one party, leading to potentially unfair settlements.
  • Using private judges and mediation can be more expensive than traditional court proceedings, which might not be feasible for all influencers or content creators.
  • Financial protection provisions in prenuptial and postnuptial agreements, while important, may not cover all eventualities and can sometimes be perceived as a lack of trust between partners.
  • The focus on legally viable provisions might overlook the emotional and relational aspects of marriage, which can be equally important to address in prenuptial and postnuptial agreements.

Actionables

  • Create a digital asset inventory to track the growth and value of your online presence. Start by listing all your social media accounts, websites, and any other digital platforms where you have a presence. Note the number of followers, engagement rates, and any income generated from each. Update this inventory monthly to monitor growth and identify trends, which can be useful for future valuations or legal considerations.
  • Draft a personal privacy policy for your relationships. Even if you're not an influencer, consider how you'd want your privacy handled in the event of a breakup. Write down guidelines for what is acceptable to share online about your relationship and what should remain private. Share this with your partner and agree to respect these boundaries to protect both parties' privacy.
  • Educate yourself on the basics of prenuptial and postnuptial agreements. While you may not be ready to hire a lawyer, you can start by researching the fundamental principles of these agreements. Look for free online resources, webinars, or community workshops that explain how these legal tools work, what they typically cover, and why they're important for financial and reputational protection. This knowledge will prepare you for informed discussions should you decide to pursue such agreements in the future.

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Who Gets Custody of the Instagram? The Money Trail of Influencer Divorces with Jackie Combs

Prenups and Postnups For Influencers and Content Creators

Jackie Combs and Nicole Lapin engage in a dialogue outlining that influencers and content creators need to treat their online presence and intellectual property as a legitimate business, suggesting a variety of ways they should protect themselves legally, particularly when it comes to marriage and potential divorce.

Influencers and Content Creators Should Treat Themselves As Businesses Regarding Their IP and Brand

Combs underscores the importance for influencers of treating their brand as a business, protecting their intellectual property (IP), endorsements, trademarks, and revenue streams through a prenuptial agreement (prenup). These assets include videos, scripts, and other content that can be monetized, licensed, and used. She advises keeping intellectual properties separate to ensure that, in case of divorce, these properties remain with the influencer. Income derived from deals made during marriage might be shared, but ownership should stay intact post-divorce.

Valuing Influencer's Brand and Assets For Prenup Is Complex

Given the uniqueness of an influencer's brand, Lapin and Combs discuss the complexity of valuing such a brand for prenuptial arrangements. Influencers are encouraged to hire a business appraiser to assess the value of their brand, which includes all IP, trademarks, contracts, revenue streams, and income. Combs suggests considering the growth trajectory of an influencer’s career, including plans for future content creation and potential business pivots, when determining how to share or maintain separation of assets during a marriage.

Prenups For Influencers Should Protect Privacy and Career Opportunities

The conversation goes deeper into the specifics of what should be protected in prenup agreements for influencers. Confidentiality clauses are highlighted as valuable tools to prevent a spouse from monetizing intimate details of the relationship or to protect against negative exposure through books, scripts, or reality TV appearances. Combs suggests clauses that prevent a spouse from participating in certain types of media, which can be crucial for influencers whose careers involve a heavy social media presence.

Revenue and Ownership of Jointly Created Channels

Lapin and Combs clarify that considerations should be made for what happens to a jointly created monetized channel in the event of a divorce. Arrangements for revenue and ownership should be clear and agreed upon, ensuring the influencer retains control over their individ ...

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Prenups and Postnups For Influencers and Content Creators

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Counterarguments

  • While prenups can protect intellectual property, they may also create a sense of mistrust or lack of commitment in a relationship.
  • The complexity and cost of valuing an influencer's brand for a prenup may not be justifiable for smaller influencers or those just starting out.
  • Hiring a business appraiser adds an additional expense that not all influencers may be able to afford.
  • The focus on protecting assets and future earnings might overshadow the importance of building a partnership based on mutual support and shared success in a marriage.
  • Confidentiality clauses, while protective, could be seen as restrictive and may lead to feelings of censorship or lack of freedom of expression for the non-influencer spouse.
  • Preventing a spouse from participating in certain types of media could be viewed as controlling and potentially harmful to the spouse's own career or personal expression.
  • The emphasis on control over jointly created channels might not acknowledge the full contribution of both parties in the creation and success of those channels.
  • Safeguarding future earnings and opportunities could potentially limit the non-influencer spouse's entitlements, which might not be seen as fair or equitable.
  • Provisions to prevent the creation of tell-all books or participation in reality TV could be seen as infringing on the no ...

Actionables

  • You can create a digital inventory of your online assets to track their growth and importance, which can be useful for valuation purposes. Start by listing all your social media accounts, websites, and digital products, noting their current followers, engagement rates, and any income they generate. Update this inventory regularly to monitor changes and growth, which will be valuable information for any future valuations or legal considerations.
  • Develop a personal brand guideline document to maintain consistency and protect your brand's integrity. This document should outline your brand's voice, visual style, core messages, and the dos and don'ts of your content. Having this guideline ensures that if you collaborate with others, including a spouse, they understand how to engage with your brand without diluting or misrepresenting it.
  • Engage in regular financial literacy workshops or online courses to better understand the financia ...

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Who Gets Custody of the Instagram? The Money Trail of Influencer Divorces with Jackie Combs

Dividing Digital Assets and Intellectual Property In Divorce

Courts Treat Influencer Brands and Digital Assets Like Business Assets In Divorce

When influencers go through a divorce, the court often has to decide on how to divide their digital assets and business operations attached to their online presence.

Court to Decide Separate vs. Community Property In Marriage

Nicole Lapin discusses the case of influencers Kat and Mike Stickler, where the division of their digital assets was ruled on by the court upon their divorce. Kat was awarded the TikTok account and Mike the YouTube channel, highlighting how these platforms are treated like business assets in legal proceedings. Combs explains that division relies on existing agreements such as prenups or postnups and the distinction between separate and community property. Assets acquired before marriage are considered separate property, while those obtained during the marriage are typically deemed community property.

Court to Rule On Influencers' Business Operation or Asset Division

For influencers, the intellectual property (IP) created and revenue received prior to marriage would be separate property. In contrast, deals entered into during the marriage would be community property, unless an agreement specifies differently. In the absence of such an agreement, assets created during the marriage, like trademarks and income streams from digital platforms, could be divided as community property.

Dividing Revenue From Shared Digital Assets Is Complex

The case of the Stickler's divorce underscored the complexity of digital asset division and how the influencer who continues to work on the brand post-divorce may gain a larger income share due to their ongoing efforts and the continued growth of the brand.

Post-Divorce, Spouse Working On Brand May Get Larger I ...

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Dividing Digital Assets and Intellectual Property In Divorce

Additional Materials

Actionables

  • You can safeguard your digital assets by creating a prenuptial agreement that specifies the ownership and division of these assets in the event of a divorce. For example, if you're a content creator with a growing YouTube channel, you might include a clause that clearly states how the channel's revenue and intellectual property will be handled if the marriage ends.
  • Consider setting up a separate business entity for your digital assets to clearly delineate personal and business property. If you're an influencer with a line of merchandise, forming an LLC for your brand can help establish it as a separate asset from your personal property, potentially simplifying asset division in a divorce.
  • Keep detailed records of the time and r ...

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Who Gets Custody of the Instagram? The Money Trail of Influencer Divorces with Jackie Combs

Legal Aspects: Celebrity Divorce Privacy & Image

As Combs underscores, celebrities face unique challenges during divorce proceedings, emphasizing discretion and the preservation of their public image—aspects that are crucial due to the direct impact on their reputation and earning potential.

Celebrities Seek Privacy In Divorces

Celebrity divorces often aim for as much privacy as possible, with mechanisms in place to shield the process from public scrutiny.

Lawyers Use Mediation to Settle and Avoid Public Court Filings

Combs suggests that lawyers frequently utilize mediation to resolve divorces for public figures, which helps keep the proceedings private, avoids court, and minimizes legal fees. This can be accompanied by hiring private judges and emphasizing the essential role of publicists when presenting joint statements to the media. Here, the objective is to settle issues amicably and discreetly, avoiding the spotlight of public filings.

Confidentiality Clauses Stop Spouses From Public Comments or Monetizing the Divorce

The insertion of confidentiality clauses in divorce agreements is pivotal, Combs indicates. Such clauses serve to stop spouses from making public comments or capitalizing on the details of their divorce, thereby safeguarding the individual’s image and personal affairs from becoming fodder for public consumption. Moreover, prenuptial and postnuptial agreements might include provisions against derogatory comments to further bolster privacy.

Scandals Can Affect an Influencer's Earning Potential

Celebrities' earning potential can be highly susceptible to public perception, an aspect crucially managed through prenups and postnups.

Prenups and Postnups: Income and Financial Protection Provisions

Combs highlights the pertinence of having financial protection provisions in prenuptial and postnuptial agreements, considering the volatility of influencers’ net worth and the possible impact of scandals. These agreements forecast potential fluctuations in income and career trajectory, including setting support limitations and waivers to secure one's finances adequately.

Additionally, Combs ment ...

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Legal Aspects: Celebrity Divorce Privacy & Image

Additional Materials

Counterarguments

  • While celebrities often seek privacy in divorce proceedings, there is a counterargument that as public figures, some level of transparency might be beneficial for societal accountability, especially when their status can influence legal outcomes.
  • Mediation, while private, may not always result in the fairest outcome for both parties, as power imbalances can be more pronounced without the oversight of a public court.
  • The use of confidentiality clauses to prevent public comments or monetizing divorce details can be seen as a way to suppress free speech and the right to share one's personal experiences.
  • Prenuptial and postnuptial agreements, though protective, can sometimes perpetuate inequalities within a marriage, particularly if one party has significantly more power or resources than the other during their creation.
  • The emphasis on protecting a celebrity's public image and earning potential might overshadow the genuine emotional and familial issues at stake in a divorce, potentially leading to less authentic resolutions.
  • The focus on legally viable provisions within prenups and postnups for financial protection might not always align with moral or ethical consider ...

Actionables

  • You can draft a personal privacy agreement for any future partnerships or collaborations, ensuring that sensitive information remains confidential. Similar to a prenuptial agreement, this document would outline what information about your partnership or collaboration is private and the consequences for disclosing it. For example, if you're starting a business with a partner, include clauses that prevent either party from publicly discussing internal disputes or financial issues.
  • Consider creating a 'reputation management plan' to proactively protect and manage your online presence. This plan could involve regularly monitoring your social media profiles, setting up Google Alerts for your name, and engaging a professional service to clean up any undesirable online information. By doing so, you maintain control over how you're perceived publicly, much like how celebrities manage their public image during sensitive times.
  • Engage in role-play ...

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