Dividing assets during a divorce can be difficult, especially when it comes to brand endorsements for professional athletes. Endorsements often make up a big part of an athlete’s income, but their unique nature makes splitting them complicated.
Determining the value of endorsements
One of the biggest challenges in dividing endorsements is figuring out their true value. Endorsements depend on the athlete’s image, reputation, and performance. All of these factors can change over time, making it hard to decide what the endorsement is worth at the time of the divorce.
Identifying personal versus marital property
Florida law requires courts to split personal and marital property using equitable distribution. Endorsements signed before the marriage usually count as personal property and are not divided. However, endorsements earned during the marriage count as marital property and are subject to division. Even if the athlete signed the deal before the marriage, any income earned during the marriage might still get shared.
Handling future earnings
Many endorsement deals pay out over time, so future earnings create another challenge. Courts must figure out how to divide these future payments, especially when the athlete’s career is still ongoing. This can be tricky when the athlete’s future performance or career path is uncertain.
The role of agents and contracts
Agents play a big role in managing endorsement contracts for athletes. These contracts must be carefully reviewed during the divorce to ensure both sides get a fair share. Since these deals often involve long-term commitments, it’s important to handle them without violating any contract terms.
Managing a complex process
Dividing brand endorsements during a divorce requires careful planning and negotiation. Understanding these challenges helps both parties navigate the process with confidence.