Question: My partner and I have been in a relationship for 12 years. He owns a number of domain names, which he has told me are worth a lot of money. He also has a large social media following and YouTube channel, which seems like it could be worth something as he gets regular income from his content.

If we were to separate, how would the domain names and his social media accounts be treated, and how do we figure out their value?

Answer: When you separate, your relationship property is usually divided on an equal basis. What constitutes your relationship property is set out in the Property (Relationships) Act 1976 and usually includes assets such as your home, chattels, bank account and KiwiSaver balances, and investments, but can also include intangible assets.

Intangible assets have no physical form. Digital assets fall into this category as do assets such as copyrights or patents, cryptocurrency and non-fungible tokens. Identifying and determining the value of these assets can become a significant challenge for separating couples.

If acquired during your relationship, your partner’s domain names will be relationship property.

The same applies to your partner’s social media accounts as they are being used to generate an income. A personal social media account will not generally be considered relationship property but a monetised account most certainly can.

It may be that your partner has a company set up in association with his social media influencing, or he may be operating as a sole trader.

How should intangible assets be valued?

There are ways to value intangible assets that allow for a more equitable and realistic division of relationship property. It is important to consider the present and likely future value of these assets. These methodologies factor in traditional quantitative methods but importantly also analyse contextual and qualitative factors. This is critical as these factors are primary drivers of intangible asset value.

For the domain name there are a number of domain valuation tools online and you can compare recent domain sales.

The valuation of the social media accounts will be more complex, particularly if the accounts are across multiple platforms. You will need to engage a professional.

Seeking expert advice

The breakdown of any relationship is stressful, and lengthy negotiations about the division of property can increase tensions. At the end of a relationship, it is important to:

1. Identify all assets that could be considered relationship property;

2. Record and document ownership of these assets;

3. Assess the strength of these assets;

4. Get an accurate valuation of the assets.

Expert advice can provide both parties with certainty that the division of assets is fair and equitable, and ensure that the current and potential future value of the assets are taken into consideration.

This article was first published in the NZ Herald.