Jennifer Grey & Clark Gregg: Dirty Dancing Royalties, Marvel Residuals, and a 10% Future Cut
She kept Baby's royalties — and gets 10% of every future Agent Coulson appearance
Key Facts
What Happened
Jennifer Grey and Clark Gregg married in July 2001, combining two distinct Hollywood legacies. Grey was forever immortalized as 'Baby' in the 1987 classic 'Dirty Dancing,' while Gregg became a cornerstone of the Marvel Cinematic Universe as Agent Phil Coulson, appearing in 'Iron Man,' 'The Avengers,' 'Thor,' and 'Captain Marvel,' plus the TV series 'Agents of S.H.I.E.L.D.' They had one daughter, Stella, born in 2001.
In July 2020, the couple announced they were divorcing after 19 years of marriage, releasing a joint Instagram statement with a photo of the two of them together. The tone was warm and cooperative — a stark contrast to many celebrity divorces. Gregg filed the formal paperwork, and the divorce was finalized in February 2021.
The settlement was a masterclass in dividing entertainment industry assets. Grey retained 100% of her earnings and residuals from both 'Dirty Dancing' and its 2004 sequel. The couple agreed to split royalties from more than 30 projects, including Gregg's Marvel films. Most notably, Gregg agreed to give Grey a 10% cut of gross earnings from any future Marvel feature films and a 5% cut from future Marvel series work — a forward-looking provision that acknowledged the ongoing value of the Coulson character.
Additional terms included Gregg paying Grey $15,144 as an equalization payment, Gregg waiving any claim to spousal support from Grey, and a six-month period of joint home ownership with Grey having sole use of the property. They agreed to split expenses for daughter Stella until age 24. The case is now studied as a model for how entertainment couples can divide the unique assets of their industry — residuals, royalties, and future franchise participation — fairly and creatively.
Legal Breakdown: Dividing Entertainment Residuals in Divorce
Pre-Marital vs. Marital Entertainment Assets
Grey's 'Dirty Dancing' earnings were generated before the marriage, making them her separate property under California law. However, residuals received during the marriage could be considered community property. The settlement resolved this ambiguity by granting Grey 100% of all Dirty Dancing-related income — likely because the original work predated the marriage by 14 years.
Future Earnings Provisions
The 10% cut of Gregg's future Marvel gross earnings is an unusual but increasingly common provision in entertainment divorces. It acknowledges that a franchise role developed during the marriage will continue generating income after the divorce, and provides the non-performing spouse a share of that ongoing value.
Equalization Payments
When the overall division of assets slightly favors one party, an equalization payment corrects the imbalance. The $15,144 payment from Gregg to Grey was modest compared to the assets involved, suggesting the rest of the division was already close to balanced. This approach avoids the all-or-nothing mentality that derails many divorce negotiations.
What This Means for Your Divorce
- →Entertainment residuals generated before the marriage are separate property — but residuals received during the marriage can be community property.
- →Future earnings provisions can give a divorcing spouse a share of ongoing franchise income, reflecting the value built during the marriage.
- →Small equalization payments can balance an overall settlement without reopening major asset divisions.
- →A cooperative divorce can produce creative, fair solutions that adversarial litigation never would — the Grey-Gregg settlement proves it.
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This article is based on publicly available court records, news reports, and legal analysis. It is provided for educational purposes only and does not constitute legal advice. No attorney-client relationship is created by reading this content.
Divorce laws vary by jurisdiction. Always consult a licensed attorney in your area before making legal decisions.