Introduction: Social Media Assets in the New Divorce War
The social networking world has transformed from a pastime into a source of income and even assets in separation or divorce cases. For joint online audiences created by couples, separation disputes will be more than just haggling for shares in them. Here is one new story on the issue which exemplifies such a recent case: That of the TikTok influencer couple Kat and Mike Stickler. Their divorce was splashed across headlines not only for the breakdown of the marriage but for the fight over their jointly owned TikTok account that had millions of followers. WSJ says they are certainly not alone in this problem.
The New Digital Asset: When TikTok and YouTube Followers Become Divorce Fodder
For instance, the Sticklers’ case with Kat’s control of a very highly lucrative TikTok account where she was using the increases in the followers to purchase a condo is in contrast to Mike inheriting an account of YouTube that only depreciated; he moved on to a career of sales. This is a very new reality of modern divorces as the social media presence has now turned into an asset, which may have real monetary value.
This may seem unorthodox, but dividing these digital assets is hardly an insignificant undertaking. Millions of followers bring with them advertising revenue, sponsorships, and brand deals, making those a valuable asset to translate into value for purposes of divorce court litigation. Divorce attorneys have just encountered a new challenge: to determine the value of such accounts and predict its future growth.
The Price of Social Media Fame/Valor Financial and Emotional Costs
For content creators, online presence is the most important source of revenue—it’s sometimes part of their identities. Influencer Vivian Tu, who has concentrated her posts on financial literacy, drives this point home by saying that social media is “my résumé.” Tu was proactive in locking up online assets, she says, by drafting a prenup which details her social media accounts in advance of her recent marriage.
It is not a trend exclusive to influencers. More people with high earning potential on TikTok, YouTube, and Instagram are getting married after protecting their digital portfolios. This is not just a matter of financial security but also of retaining control over the brand and all that is visible and represented to the public.
Complexity of the Valuation of a Social Media Account
Attorneys valuing social media accounts in divorce take into account the amount of income one is producing for the said platform. Sponsorships, ads, and collaborations can add up to big figures extremely quickly. Such a following is also taken into account. A large following is vital to the current earnings but also boasts significant potential for growth in the future. And finally, there are the brands themselves: several influencers can attract followers because of their personality itself, so some accounts become intrinsically linked to the person behind the screen.
This valuation process is yet another new area that is still uncharted for lawyers. In a nutshell, the worth of social media accounts can’t be determined conveniently as others with tangible value. However, in most cases, they are as valued as other traditional assets, and attorneys nowadays are consulting digital experts to apprise them of the worth of such accounts during divorce settlements.
What the Future Holds for Social Media and Divorce Settlements
As social media grows as a medium for personal and financial expression, it will increasingly impact relationships and the decisions that lead to divorce. Online couples should look to establish clear terms at the outset through a prenup or co-management contract; established professionals want to make sure that each partner’s work is recognized in the event of a split.
The Stickler case really points out that social media has to be taken seriously in today’s relationships. It is not longer a hobby but rather a genuine full-time career for many, and, as divorce attorneys are now finding, brings new challenges-and opportunities-to the negotiation table.
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