A physical representation of a bitcoin

Handling Digital Assets in a Divorce

Non-Physical And Very Complex

Technology continues to evolve day by day, and many digital assets that held little monetary value years ago now hold great worth. These digital assets can create unique problems when trying to determine how they will be divided in a divorce. Here are some things to keep in mind when working through digital asset issues in a divorce.

Determining Value

Much like stocks and similar investments, digital assets fluctuate in value very quickly and very often. The value of a cryptocurrency can rise by a great number one day only to fall rapidly the next. Nevertheless, determining an accurate value for a digital currency is incredibly important in order for truly equitable property distribution to take place in the divorce.

In addition, many non-fungible tokens (also known as NFTs) can be difficult to value because of similar issues. In some cases, some people create a false market for their NFTs by purchasing their own assets with their own money in order to set the market and sell their assets to an actual buyer for a higher price. Because of this occurrence, it can be difficult to know the true value of an NFT unless purchased or sold on a verified platform.

Asset Transfer

The other primary issue associated with digital assets in a divorce is the issue of asset transfer when the divorce is finalized. While physical assets such as a car or jewelry can actually be handed over to the recipient, digital assets are primarily stored in digital wallets or encrypted networks.

If digital assets end up divided in a divorce, then the party receiving digital assets has to ensure that they have everything necessary to complete a digital asset transfer. This means that digital privacy laws regarding password and file-sharing must be adhered to while assets are transferred from one party to another.

Ask Questions of a Divorce Attorney

Digital assets and privacy laws are constantly changing to meet the current times, so if you are uncertain of how to approach digital assets in a divorce, it’s crucial to speak with an experienced divorce attorney who can provide you with guidance on how to move forward with a divorce involving digital assets. At Levi Divorce & Family Law Attorneys, we can help you navigate the challenges of complex property division to help you move forward with the next chapter of your life in the best way.

Learn more about asset division in New York or speak with one of our Queens divorce attorneys by calling us at (718) 215-0121 or by visiting us online.