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No one's marriage is completely immune from divorce. Sometimes, things don't work out for one reason or another (and quite often for many reasons in between). When the money and valuable assets are involved, it can add a layer of complexity. Of course, in the rare situation that you have an uncontested and amicable divorce, you're probably wondering what options you have to protect your six-figure domain name portfolio.
Here are some things you can consider I've learned while helping manage large portfolios, where anything can happen at any time.
Divorces happen – what happens next?
Divorces happen. They can affect yours net income, and domains are assessable, often assessing assets that may be associated with any divorce. First and foremost, I recommend you not to panic. In the US, divorce rates are about the same as high as 23% in some states. So the first thing you'll want to do here before closing any big deal or selling a prime piece of digital real estate is to contact your attorney.
Consult your attorney about applicable laws
Only qualified legal counsel can provide you with guidance regarding state laws and regulations related to divorce. There are many different types of marriages, unions, and so on, and other documents that may be involved (such as a prenuptial agreement) that require reliable legal guidance before making any decisions.
Avoid making any large transactions until your divorce is finalized
By all means, stop making important transactions. By the time you've figured it all out, you can brace yourself for even more legal disclosures and added fees. Instead, stop. Take a deep breath. Evaluate your current domain name portfolio and consider what you can do next. But avoid cashing anything now. If you don't have cash on hand, there are many options you can consider to leverage your domain values against equity. But this should be the last resort.
Talk to an experienced domain name broker about options
Talk to an experienced domain name broker and expert. We've seen it all. I saw people from all walks of life. And not everyone has a sunset honeymoon wedding that spans the span of five decades. Since most marriage settlements involve fixed assets, and since the value of your domain name may fall into that category, it is best to leave these assets intact. But you may be able to have some leverage here – if your lawyer advises that you do.
Discuss a timeline with your divorce attorney
Once you've hired a lawyer, ask them what the divorce timeline is. Ask them what you can and can't do with your domain name assets in the meantime. You may be surprised to find that you have a moving room. Based on this advice, you can make the best decision moving forward.
Connected: 6 Tips to Help Your Business Survive a Divorce
Options for leveraging the value of the domain name
One thing you might consider, with your attorney's approval and guidance, is getting a short-term or long-term loan based on the value of a domain or domains currently in your portfolio. In some cases, investors, domain name brokers and other professionals may see the intrinsic value in your portfolio and be willing to write you a personal loan against the assets that count as debt that you have. Again, this is only an avenue that you can fully consider after having the approval and guidance of qualified legal counsel. I can say that I have seen this type of situation before and it can be ideal for some situations.
Speak it
Another possible option you can consider is talking to your spouse about it. Everyone knows that divorces are not cheap by any means. Depending on the state of your relationship, you may be able to reach an agreement with your spouse that results in them signing to liquidate a domain name or two to free up much-needed funds to cover attorney fees, listing costs and relocation costs, to name a few. You'll never know if you don't ask.
Don't lose hope
No one enters a marriage expecting it to end in divorce. But in reality, they happen all the time. Usually, assets are contested by both parties. The good news is that with a little patience, positive thinking and affirmations, you can get through these troubles and be back on your feet in no time. Along the way, consider the benefit you get from owning a domain name portfolio that appreciates in value over time. This means that no matter what, you won't be out of the house and home when all is said and done.