Blurred Lines: divorce and music royalties

Colin Davies, Senior Lawyer

News of Blur guitarist Graham Coxon’s divorce, brings back into focus the question of how the divorce court deals with one of the most important income streams of any successful musician – royalties.

A recent case involving the bass player in a well-known and highly successful band explains.

In that case, the husband received from his music career in five different ways:

1. publishing or composition royalties in respect of songs he had written;
2. a share of income received in respect of broadcasts of the band’s songs on radio and TV;
3. income representing 8.33% of the lead singer’s publishing or composition royalties by virtue of an agreement between the band’s members;
4. an equal share of the recording royalties paid through a company which was owned equally by the band’s members; and
5. his share of ticketing and merchandising income generated by touring.

Various experts, gave evidence in relation to the value of the husband’s income.

No capital value was given to income stream (v) as it was pure future earnings. Fans would be coming to see the band perform, not listen to songs.

Income streams (i) to (iv) were given a capital value, which was put at £4,450,693.

Including this sum, the total assets of the couple came to £10,220,158. The court applied the equal sharing principle in this case, which gave the wife £5,110,079. In order for the wife to receive this sum, the husband was ordered to pay her a lump sum of £2,355,728, to be paid in three instalments; £1,500,000 by 1 April 2020; £427,864 by 1 October 2022; and £427,846 by 1 October 2023. Pending payment of the first instalment, the husband was to pay maintenance to the wife, which would then reduce proportionately on payment of the second instalment and would then cease entirely.

It is unlikely that we will ever know the outcome of Graham Coxon’s divorce but the above gives a useful insight into the processes involved in determining what should happen.

For more advice on separation, divorce or legal assistance for families please contact the Family Law department on 0161 832 3434 or email info@kuits.com.