Author: WB Admin

Post-Divorce Intellectual Property Rights: Dividing Royalties, Patents, and Trademarks in Creative Professions

Posted on by WB Admin

On behalf of The Law Office of Wickersham and Bowers posted in Family Law on Monday April 21st, 2025.

In Florida divorces, dividing property can be challenging, especially if one or both spouses own intellectual property. For professionals in creative or technical fields, patents, trademarks, copyrights, and royalty agreements may be the most valuable assets on the table. Because these assets are tied to future income and may not be easy to value, courts must weigh several factors when splitting them under Florida’s equitable distribution rules.

How Florida Classifies and Divides Intellectual Property

Florida courts treat most assets created during the marriage as marital property, even if only one spouse holds legal title. That includes intellectual property like trade secrets, business goodwill, and copyrighted material. If the asset was created before the marriage but increased in value during the marriage, part of that growth may still be considered marital.

In cases involving trade secrets, protective orders and NDAs are often used to keep proprietary business information private during and after the divorce process.

How to Value Intellectual Property

Valuing intangible assets like patents or copyrights is a critical step in dividing them fairly. The most common methods include:

  • Cost Approach: Calculates how much it would cost to recreate the asset today. Works best for early-stage or undeveloped projects.
  • Market Approach: Compares the asset to similar ones that have sold or been licensed. Often used for patents or trademarks with market data.
  • Income Approach: Projects future income, such as royalties, then discounts it to reflect risk and present value.
  • Relief-From-Royalty Approach: Estimates how much someone would pay to license the asset instead of owning it. This model blends the income and market approaches.

How to Structure the Split

Courts may award the intellectual property to the original creator and assign a share of future income, such as royalties or licensing fees, to the other spouse. In some cases, a buyout is negotiated instead based on the asset’s current appraised value. For incomplete or speculative IP, a formula may be used to divide any future earnings based on the portion created during the marriage.

At the Law Office of Wickersham & Bowers, we help clients handle complex asset division, including intellectual property rights. If your divorce involves patents, royalties, trademarks, or creative work, contact us today to schedule a consultation. 

Navigating Dynasty Trusts in High-Net-Worth Families: Balancing Perpetual Wealth With IRS Rule Compliance

Posted on by WB Admin

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Monday April 21st, 2025.

Florida is one of the best states for wealthy families who want to protect their legacy for generations. Thanks to state laws that allow long-lasting trusts, families can build and pass on wealth while avoiding major tax hits, especially the generation-skipping transfer (GST) tax. A dynasty trust is one of the most effective ways to do this, but it needs to be set up with the right strategy.

How Dynasty Trusts Keep Wealth in the Family

A dynasty trust is an irrevocable trust that can last up to 360 years in Florida. This allows wealth to pass from generation to generation without being taxed at every step. Instead of handing assets directly to children and grandchildren, which can trigger estate and gift taxes, the trust holds and manages the assets on their behalf.

Since the assets are never owned outright by each generation, they are shielded from estate taxes and creditors. This setup also prevents the funds from being included in divorce settlements or lawsuits.

Avoiding the GST Tax

The GST tax applies to transfers made to someone two or more generations below the giver, such as a grandchild. It’s a 40% tax that can seriously reduce what’s passed down. However, a dynasty trust funded with the federal GST exemption of $13.99 million per person in 2025 can avoid this tax altogether.

Because the exemption amount is expected to shrink after 2026 ($7 million after inflation), now is a smart time to take action. Once the trust is funded using this exemption, the assets can grow and be passed down tax-free for hundreds of years.

Florida’s Advantage for Long-Term Planning

Florida’s 360-year trust limit gives families more time than most states to let their wealth grow. Plus, trusts created here can be used by non-residents if they use a Florida-based trustee. This flexibility makes Florida a popular choice for those looking to avoid future estate tax changes.

At the Law Office of Wickersham & Bowers, we help high-net-worth families create dynasty trusts that protect their assets and reduce long-term tax burdens. If you’re thinking about setting up a multigenerational plan, contact us to schedule a consultation.

Cryptocurrency in Divorce: Tracing, Valuing, and Dividing Digital Assets in High-Net-Worth Separations

Posted on by WB Admin

On behalf of The Law Office of Wickersham and Bowers posted in Family Law on Thursday March 20th, 2025.

Divorce often reveals individual personalities as spouses rush to protect themselves. One of the most contentious issues in divorce is property division. Cash and real estate are easy to divide because they can be valued. However, it’s hard to track crypto because its value fluctuates. 

Florida law stipulates that any cryptocurrency bought during the marriage is marital property that should be split fairly. However, how do you find, value, and split the crypto properly?

Finding Hidden Cryptocurrency

Some people try to hide digital assets during a divorce. Since cryptocurrency wallets aren’t always linked to banks, crypto can be moved or stashed without leaving a clear trail. That doesn’t mean it’s impossible to find.

Here’s how attorneys and financial experts track hidden crypto:

  • Bank and credit card records: Large withdrawals or payments to crypto exchanges.
  • Tax returns: The IRS requires people to report crypto gains. Missing or inconsistent tax documents might hint at undisclosed assets.
  • Forensic accountants: Follow digital footprints to trace where money has gone, including crypto transactions.
  • Subpoenas to exchanges: If a spouse is suspected of hiding funds, legal action can force platforms to turn over transaction history.

Putting a Price on Crypto Assets

Unlike cash or stocks, cryptocurrency doesn’t have a fixed value. Courts usually pick a specific valuation date, such as the date of separation or the divorce filing, to set the value.

Some factors that go into valuation include:

  • Current market price: What the cryptocurrency is worth at a given moment.
  • Historical prices: Past transaction records may be useful if assets were moved before the divorce.
  • Expert analysis: Financial professionals may be needed to determine fair pricing and predict future value shifts.

Splitting Cryptocurrency in a Divorce

Once the value is set, the next step is deciding the share each person gets. There are three main ways this is handled:

  1. Direct transfer: The crypto is split and sent to each spouse’s separate digital wallet.
  2. Asset trade: One spouse keeps the crypto while the other receives something else of equal value (like cash, stocks, or property).
  3. Sell and split: The crypto is sold, and both spouses divide the profits.

If you need help handling cryptocurrency in your divorce, contact Wickersham & Bowers today for expert legal guidance.

Postmortem Estate Planning: Correcting Errors Through Disclaimers, Decanting, and Judicial Reformation

Posted on by WB Admin

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Thursday March 20th, 2025.

Nobody likes to think about what happens after they’re gone, but estate planning is supposed to make things easier for loved ones. The problem is that wills and trusts don’t always get it right. There could be a typo, the law changed, or the document doesn’t reflect what the person really wanted. The good news is that mistakes in estate plans can be fixed, even after death.

Florida provides legal tools like judicial reformation, trust decanting, and disclaimers to help correct errors and ensure assets go where they should.

Judicial Reformation

A will is supposed to be final. However, Florida Statute § 732.615 allows courts to fix mistakes of fact or law if there’s clear and convincing evidence of an error. Judicial reformation lets a judge rewrite a will to match what the deceased actually intended.

For example, if a will leaves property to “John Smith” but the testator meant “Jon Smyth,” the court can step in and correct the mistake. Even if the will seems clear on paper, courts can look at outside evidence, like emails or witness testimony, to determine what was really supposed to happen.

Decanting

Unlike wills, trusts are harder to change, especially if they’re irrevocable. However, according to Florida Statute § 736.0415, trustees can “decant” a trust. They can move assets from an old trust into a new one with better terms.

Decanting might be necessary when:

  • The trust has outdated terms that make managing it difficult.
  • Tax laws change, and the current trust structure no longer makes sense.
  • The beneficiaries’ needs have shifted, and the trust needs to be more flexible.

Disclaimers

Sometimes, a beneficiary doesn’t want an inheritance. Some of the reasons could be that inheritance comes with tax burdens, or maybe they’d rather have it go to someone else. A qualified disclaimer lets them legally refuse the inheritance without penalty.

To work, the disclaimer must be:

  • In writing
  • Filed within nine months of the decedent’s death
  • Irrevocable (once you disclaim it, you can’t change your mind)

If you need help fixing an estate plan, contact Wickersham & Bowers today to get the right legal guidance.

Enforcing Prenuptial Agreements Across State Lines: Analyzing the Challenges and Considerations When a Prenuptial Agreement Is Subject to Multiple Jurisdictions

Posted on by WB Admin

On behalf of The Law Office of Wickersham and Bowers posted in Family Law on Thursday February 27th, 2025.

Prenuptial agreements can help couples protect their assets and define financial responsibilities before marriage. However, if a couple moves to another state or files for divorce outside their original jurisdiction, it can be difficult to enforce the agreement. Each state has different laws, and a prenuptial agreement that is valid in one place may not hold up in another.

Why Prenuptial Agreements May Not Be Enforced in Every State

State laws (not federal law) govern prenup agreements. This means each state has its own rules about what makes an agreement valid. Some states strictly enforce prenups, while others review them more closely to ensure fairness​.

One major issue is that some states follow community property laws. These laws automatically divide assets equally between spouses when they separate. If a prenup conflicts with those laws, a court may refuse to enforce certain terms​. Courts may also reject a prenup if they find it unfair, one-sided, or lacking full financial disclosure at the time of signing​.

How Can You Strengthen a Prenuptial Agreement Across State Lines?

If a couple moves or owns property in different states, they should take steps to protect the agreement. Some of the things they can do include:

  • Choice-of-Law Clause: A prenup should specify which state’s laws will apply in case of a dispute. Without this, the state where the divorce is filed may apply its own laws, which could weaken the agreement​.
  • Full Financial Disclosure: Courts are more likely to enforce a prenup agreement when both spouses had complete knowledge of each other’s finances before signing​.
  • Independent Legal Representation: If both spouses had their own attorneys when signing the prenup, courts are less likely to question its fairness​.
  • Review and Update the Agreement: If moving to another state, consult an attorney to check if the prenup complies with local laws​.

We Can Help Protect Your Agreement Before It’s Challenged

A prenuptial agreement is only useful if it holds up in court. You can take extra steps before marriage to prevent future legal battles. If you need to create or update a prenup, Wickersham & Bowers can help ensure it is enforceable no matter where life takes you. Contact us today for a consultation.

Incorporating Charitable Trusts Into Estate Plans: How They Benefit Both Estate Taxes and Philanthropy

Posted on by WB Admin

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Thursday February 27th, 2025.

Many Florida residents want to leave something meaningful for their families and for the causes they believe in. One way they can do that is through charitable trusts. A charitable trust allows you to donate to charity while securing tax benefits and managing wealth in the process. By supporting education, healthcare, or any other cause, a charitable trust ensures your generosity continues long after you’re gone.

What Is a Charitable Trust?

A charitable trust is a legal way to set aside money or assets for charity. In the process, you can keep the financial benefits for yourself or your heirs. There are two main types of charitable trusts:

  • Charitable Remainder Trust (CRT): You or your chosen beneficiaries receive an income from the trust for a set period. After that, whatever remains goes to the charity of your choice​.
  • Charitable Lead Trust (CLT): The charity gets income from the trust first. Then, after a certain period, the remaining assets are passed to your heirs​.

How Can a Charitable Trust Help With Taxes?

Charitable trusts can help reduce taxes in several ways:

  • Income Tax Deduction: You can get a tax deduction when you set up the trust. The deduction is based on the amount that will eventually go to charity​.
  • Avoiding Capital Gains Tax: If you donate appreciated assets, like stocks or real estate, you won’t have to pay capital gains tax when they’re sold​.
  • Lower Estate and Gift Taxes: Assets in a charitable trust may not be counted in your taxable estate. This can reduce or even eliminate estate taxes​.
  • Protection from Creditors: Since the assets are held by the trust, they are generally shielded from lawsuits and financial claims​.

Besides tax advantages, you can use charitable trusts to support charities for years to come. Many nonprofits rely on steady donations to plan their programs and help more people​. Instead of a one-time gift, a charitable trust can provide long-term financial support for these organizations.

Make a Plan That Reflects Your Values

A charitable trust can be a great way to give back while also protecting your estate. If you want to explore your options, Wickersham & Bowers is here to help. Contact us today to get started on an estate plan that fits your goals.

Contact The Law Office of

Wickersham & Bowers

    Let's Talk
    About Your Legal Matter

    Contact Us