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No one's marriage is completely divorce-proof. Sometimes, things just don't work out for one reason or another (and there are often many reasons in between). When money or valuable assets are involved, it gets even more complicated. Of course, in the rare circumstance of an amicable, uncontested divorce, you're probably wondering what options you have to protect your six-figure domain name portfolio.
Here are some considerations I've learned while helping manage large portfolios where anything can happen at any time.
RELATED: Couples are borrowing this strategy from corporate work to improve their relationship — and it's working
Divorce happens — what happens next?
Divorce happens. Divorce can affect your net worth, and domains are appraised and often valued as assets tied to divorces. First and foremost, we recommend that you do not panic. In the United States, divorce rates are as high as 23% in some states. Therefore, before you close any big deals or sell any prime pieces of digital real estate, we recommend that you contact an attorney first.
Please consult an attorney regarding applicable law
Only a qualified legal advisor can advise you regarding state laws and regulations regarding divorce. Because there are many different types of marriages, unions, etc., and other documents that may come into play (such as prenuptial agreements), you should obtain reliable legal advice before making any decisions.
Avoid making any big transactions until your divorce is finalized
Never make any significant transactions. You risk further legal investigation and additional fees until you have it all figured out. Instead, don't. Take a deep breath. Evaluate your current domain name portfolio and consider what you can do afterwards, but avoid cashing out right now. If you're short on cash, there are plenty of options you can consider to leverage the value of your domains for capital. This should be a last resort, though.
Speak to an experienced domain name broker to discuss your options
Consult with an experienced domain name broker or professional. We've been through it all. I've seen people from all walks of life. Not everyone has a 50-year sunset honeymoon marriage. Most divorces involve assets, and the value of your domain name can fall into that category, so it's best to leave those assets alone. But you might be able to exert some influence here. If your lawyer advises you to do so.
Discuss timelines with your divorce lawyer
Once you have engaged an attorney, ask about the timeline for your divorce, and what you can and can't do with your domain name assets during that time. Some leewayWith this advice, you can make the best decision for the future.
Related: 6 Guidelines for Surviving a Divorce and Keeping Your Business Alive
Options to increase the value of your domain name
One avenue you could consider, with the approval and guidance of an attorney, is to take out a short or long term loan based on the value of the domains you currently have in your portfolio. In some cases, an investor, domain name broker, or other professional will understand the intrinsic value of your portfolio and will take out a personal loan against the assets that would count as debt. Again, this is something you should only fully consider with the approval and guidance of qualified legal counsel. I've been in this situation before, and I can say it could be ideal in some circumstances.
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Another viable option you can consider is to actually talk to your spouse. We all know that divorce is never cheap. Depending on the state of your relationship, you might be able to negotiate with your spouse and get them to agree to sell a domain name or two to set aside the funds you need for legal fees, listing fees, relocation costs, etc. If you don't ask, you'll never know.
Don't give up hope
No one gets into a marriage expecting it to end in divorce, but the reality is that divorce happens all the time. Assets are usually the focus of the two sides' battles. Luckily, with patience, a positive mindset, and a positive attitude, you can weather these challenges and bounce back quickly. In the process, consider the benefits of owning a domain name portfolio that will increase in value over time. This means that no matter what, you won't be stuck walking out the door when it's all over.
