Equitable Distribution of Influencer and Digital Businesses in New York
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The business of influencing has become one of the most significant economic developments of the past decade. What began as a means of sharing photos, videos, and commentary on social media has evolved into a multibillion-dollar industry built on monetized audiences, sponsorship agreements, subscription platforms, and e-commerce brands. For many entrepreneurs, a personal brand is no longer merely a marketing tool; it is the business itself.
As these businesses become increasingly common, a new category of marital assets has emerged: the influencer enterprise. A spouse may earn substantial income through platforms such as Instagram, TikTok, YouTube, and Patreon. Revenue may derive from sponsored posts, affiliate commissions, advertising, online courses, digital products, podcasts, and direct-to-consumer sales. In some cases, the enterprise may generate a seven- or eight-figure annual income and represent the parties’ most valuable asset.
The law has not developed a separate doctrine for influencer businesses, and as of yet, we have not seen that one is necessary. New York’s existing equitable distribution principles provide a workable framework. The challenge lies in applying traditional concepts—marital property, active appreciation, goodwill, and the prohibition against double counting—to enterprises whose value may be tied to algorithms, audience engagement, and the public persona of a single spouse.
The Influencer Business as Marital Property
Domestic Relations Law (“DRL”) § 236(B)(1)(c) defines marital property broadly as all property acquired by either or both spouses during the marriage and before the execution of a separation agreement or commencement of a matrimonial action, regardless of the form in which title is held. The statute reflects New York’s recognition that marriage is an economic partnership and that assets accumulated through the efforts of either spouse should generally be shared equitably.
Where an influencer or digital business is created during the marriage, there is little question that the enterprise is presumptively marital property. The fact that the accounts, contracts, and intellectual property are held solely in one spouse’s name does not alter that conclusion.
More nuanced issues arise when the business predates the marriage. In that circumstance, the titled spouse bears the burden of establishing the separate-property component. Even then, appreciation occurring during the marriage may be distributable if it resulted from active efforts by either spouse. In Price v. Price, 69 N.Y.2d 8 (N.Y. 1986), the New York Court of Appeals held that appreciation in separate property attributable to the direct or indirect contributions of either spouse constitutes marital property. Thus, a YouTube channel launched before marriage but transformed into a profitable media business during the marriage may contain a substantial marital component.
The non-titled spouse’s contributions are not limited to direct involvement in content creation. Courts have long recognized that homemaking, childcare, administrative assistance, and emotional support may contribute to the growth of a business. See Price, 69 N.Y.2d at 8. In the influencer context, a spouse may have assisted with photography, editing, bookkeeping, marketing, merchandising, customer service, or the day-to-day responsibilities that enabled the creator spouse to devote time to content production.
What Exactly is Being Valued?
The threshold issue in any valuation is defining the asset. An influencer business is rarely a single account. It is more accurately understood as an ecosystem of tangible and intangible assets that may include social media accounts, trademarks, domain names, email subscriber lists, digital content libraries, customer databases, affiliate contracts, sponsorship agreements, and recurring subscription revenue. The business may also include ownership interests in entities formed to hold and operate these assets, such as limited liability companies or corporations.
Not all value, however, is transferable. The fact that an influencer earns substantial income does not necessarily mean the business has a corresponding fair market value. The central legal and valuation issue is whether the earnings derive from assets that can be sold or transferred, or from the spouse’s ongoing personal services and reputation.
Enterprise Goodwill Versus Personal Goodwill
New York courts recognize that a business can possess goodwill—an intangible value beyond its physical assets. In McSparron v. McSparron, 87 N.Y.2d 275 (N.Y. 1995), the New York Court of Appeals reaffirmed that goodwill associated with a professional practice may constitute marital property.
In the digital business context, enterprise goodwill may include assets such as trademarks, evergreen content, search engine rankings, automated marketing systems, subscription renewals, and customer lists. These features may enable the business to continue generating revenue even if ownership changes hands.
Personal goodwill, by contrast, is inseparable from the creator’s reputation, credibility, and future labor. Followers may subscribe because they are attached to a particular individual. If the audience would disappear upon that person’s departure, much of the enterprise’s apparent value may represent future earning capacity rather than a distributable asset.
This distinction is particularly significant in light of New York’s elimination of enhanced earning capacity as a marital asset for actions commenced after January 23, 2016. See Anonymous v. Anonymous, 2021 N.Y. Misc. LEXIS 542 (Sup. Ct., N.Y. Cty. 2021). While a spouse’s future ability to earn remains relevant to support, it is not itself subject to equitable distribution.
Discovery and Forensic Accounting
Tax returns alone rarely tell the full story. Requests for detailed platform analytics, sponsorship and affiliate agreements, merchant processor statements, intellectual property registrations, and data concerning subscriber retention and engagement are often necessary. Bank and credit card records may reveal personal expenses paid through the business. Third-party discovery requests to advertising platforms, payment processors, and online storefront providers may also be necessary.
Because digital entrepreneurs frequently operate across multiple entities and revenue streams, a forensic accountant can play a critical role in tracing income and normalizing financial statements.
Practical Solutions
Given the volatility of digital businesses, parties often prefer negotiated solutions over litigated valuations. Buyouts may be paid over time, with earn-out provisions tied to future performance. Alternatively, the titled spouse may retain the enterprise while the non-titled spouse receives offsetting assets.
Settlement agreements should address ownership of accounts, usernames, passwords, trademarks, archived content, pending sponsorship obligations, and tax liabilities. Where children appear in monetized content, agreements should also address consent, privacy, and allocation of any revenue attributable to the children’s likenesses.
A Growing Area of Matrimonial Law
Building an online business can take years of creativity, effort, and support from both spouses. When a marriage ends, that business may represent one of the couple’s most significant assets. If a family’s income depends on social media, e-commerce, or other digital ventures, it is important to understand that followers and likes can translate into real economic value. In a divorce, the question is no longer whether a digital business matters—it is how much the value of going viral is worth.
If you have questions about the economic impact one spouse’s digital business may have on the ultimate allocation of assets in a divorce, please reach out to Sydney (sbg@gdblaw.com) or Atty (akb@gdblaw.com) directly.