Intangible but Invaluable: Dividing Influencer Accounts in Divorces

As influencer culture dominates modern media, social media accounts have evolved from personal hobbies to lucrative assets. These platforms—Instagram, TikTok, YouTube, and others—serve as primary income sources for many individuals, particularly influencers. When influencers or their spouses decide to divorce, the question arises: How do you divide an asset like a social media account that is intangible but invaluable?

The Value of Influencer Accounts in a Divorce

Social media accounts, especially those tied to an influencer’s brand, can generate substantial income through sponsorships, ad revenue, and affiliate marketing. Beyond monetary value, these accounts may also include:

• Audience goodwill: A following built over years of content creation.
• Partnership contracts: Existing agreements with brands or agencies.
• Future earning potential: The expected revenue from ongoing and future engagement.

While these aspects make influencer accounts valuable, they also introduce challenges in accurately assessing their worth and dividing them equitably.

Are Influencer Accounts Community Property in California?

California is a community property state, meaning that most assets acquired during the marriage are considered equally owned by both spouses. However, the classification of influencer accounts depends on when and how they were created.

If the influencer started their account and built a significant following before marriage, the account may be considered separate property. However, any income earned from it during the marriage could be deemed community property.

In contrast, if the account grew substantially during the marriage, it is more likely to be classified as community property. Both spouses may have contributed to its growth, whether through direct involvement or support like managing household responsibilities to free up time for content creation.

Valuing Influencer Accounts in Divorce

Determining the value of an influencer account requires financial expertise and industry knowledge. Factors include:

• Revenue Streams: Income from ads, sponsorships, and merchandise sales.
• Engagement Metrics: The value of the account’s audience based on likes, comments, and shares.
• Brand Equity: The strength of the influencer’s personal brand and its marketability.
• Contracts and Agreements: Existing deals with brands or platforms.

Hiring a forensic accountant with experience in digital assets is often necessary to provide an accurate valuation.

Once an account is valued, it’s time to assign ownership of it. But can influencer accounts be divided?

Physically dividing a social media account is not feasible. Instead, courts focus on compensating the non-influencer spouse for their share of the account’s value. This might involve a buyout agreement or income division. 

Under a buyout agreement, the influencer retains full control of the account. It pays the spouse a lump sum or structured payment reflecting their share of its value. In contrast, income division involves sharing future earnings from the account over a specified period. Both options require careful negotiation to ensure fairness while preserving the account’s functionality.

Disputes Over Ownership and Contributions

Dividing influencer accounts often sparks disputes, particularly over ownership and contributions. For example, suppose the non-influencer spouse managed the account, edited content, or acted as a business manager. In that case, they may argue for a larger share. Similarly, contributions like financial investment or taking on childcare duties to enable the influencer’s career could also warrant consideration.

California courts aim to balance these contributions while respecting the influencer’s intellectual property rights and professional autonomy.

Protecting Influencer Accounts with Prenuptial Agreements

Prenuptial agreements, often referred to as prenups, are powerful tools for protecting influencer accounts in a marriage. These agreements allow couples to decide how specific assets will be classified, valued, and divided in the event of a divorce. For influencers whose social media accounts are critical to their income, brand, and personal identity, a prenup can safeguard these intangible but highly valuable assets. Here’s how:

1. Defining Ownership of the Account

A prenup can specify that the influencer account remains the separate property of the account holder, regardless of whether it generates income during the marriage or whether the other spouse contributes to its growth. This provision ensures that the account is not classified as community property subject to division under California law.

2. Clarifying Income Rights

Social media accounts often generate income through sponsorships, affiliate marketing, and ad revenue. A prenup can outline who has the right to this income, even if the account itself is classified as separate property. For example, the contract could stipulate that all income derived from the account remains the influencer’s separate property.

3. Valuing and Excluding Business Contributions

Influencer accounts often function like businesses, with investments in equipment, editing software, and marketing. A prenup can establish the account’s value at the time of the marriage and ensure that any pre-marriage value remains separate property. It could also clarify that personal or marital funds used to grow the account are not grounds for a claim on the account itself.

4. Protecting Intellectual Property

An influencer’s personal brand—including their name, image, and likeness—is often tied to their social media presence. A prenup can clearly state that these intellectual property rights belong solely to the influencer. This ensures that the spouse cannot claim ownership or control over the account and that the influencer retains all decision-making power over the brand.

5. Outlining Support for Collaborative Efforts

If the spouse plays a direct role in the success of the influencer’s account—such as managing finances, shooting videos, or engaging with followers—the prenup can specify how these contributions will be compensated in a divorce.

6. Protecting Future Earnings

Social media accounts often have significant earning potential beyond their current value. A prenup can prevent a spouse from claiming a share of future earnings tied to deals or sponsorships secured after the divorce. It can also ensure that the anticipated growth of the account does not become a factor in divorce settlements.

How Kaspar & Lugay LLP Can Help

Dividing influencer accounts in divorce is a novel and complex challenge. These intangible yet invaluable assets require careful valuation, negotiation, and legal expertise to ensure an equitable outcome. For individuals navigating this issue in Menlo Park or the greater Bay Area, working with a skilled family law attorney is essential. Contact Kaspar & Lugay LLP today to schedule a consultation and learn how we can assist you in protecting your interests.