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Nobody’s marriage is entirely immune from a divorce. Sometimes, things don’t work out for one reason or another (and quite often for many reasons in between). When 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 safeguard your six-figure domain name portfolio.
Here are a few things that you can consider that I’ve learned while helping manage large portfolios, where anything can happen at any time.
Divorces happen — what’s next?
Divorces happen. They can affect your net worth, and domains are appraisable, often appreciating assets that can be tied to any divorce. First and foremost, I recommend that you don’t panic. In the U.S., divorce rates are as high as 23% in some states. So, the first thing you’ll want to do here before you close any big deals or sell a prime piece of digital real estate is contact your attorney.
Consult with your attorney on applicable laws
Only qualified legal counsel can offer you guidance that pertains to state laws and regulations surrounding divorce. There are many different types of marriages, unions, and so forth, as well as other documents that could be involved (like a prenuptial agreement) that necessitate gaining credible legal guidance before you make any decision.
Avoid completing any large transactions until your divorce is finalized
By all means, stop making significant transactions. Until you have everything figured out, you could be setting yourself up for even more legal discovery and added fees. Instead, stop. Take a deep breath. Assess your current domain name portfolio and consider what you can do in the aftermath. But avoid cashing anything out now. If you are short on cash, there are plenty of options you can consider to leverage your domain values against capital. But this should be a last resort.
Speak with an experienced domain name broker for options
Talk to an experienced domain name broker and expert. We’ve seen it all. I’ve seen people from all walks of life. And not everyone has a sunset honeymoon marriage that spans the gamut of five decades. Since most marriage dissolutions involve viable assets, and since your domain name value can fall into that category, it’s best to leave these assets untouched. But you may be able to have some leverage here — if your attorney advises that you do.
Discuss a timeline with your divorce attorney
Once you have contracted an attorney, ask them what your 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 some wiggle room. Based on this advice, you can make the best decision moving forward.
Related: 6 Guidelines for Helping Your Business Survive a Divorce
Options for domain name value leverage
One thing that you can consider, pertinent to your attorney’s approval and guidance, is taking out a short or long-term loan based on the value of a domain or domains that are currently sitting 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 owe. Again, this is only a path that you can fully consider once you have the approval and guidance of qualified legal counsel. I can say that I’ve seen this type of situation before, and it can be ideal for some situations.
Talk it out
Another viable option that you can consider is to actually talk 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 work out a deal with your spouse that results in them signing off on you liquidating a domain name or two to free up much-needed funds to cover attorney costs, listing costs and relocation costs, to name a few. You’ll never know if you don’t ask.
Don’t give up hope
Nobody enters a marriage expecting it to end in a divorce. But in reality, they happen all the time. Commonly, assets are contested by both parties. The good news is that with some patience, positive thinking and affirmation, you can make it through these troubles and be back on your feet in no time. Along the way, consider the benefit that you have of owning a domain name portfolio that appreciates value over time. It means that no matter what, you’re not going to be out of the house and home when all is said and done.
