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Is your spouse hiding digital assets?

On Behalf of | Oct 24, 2022 | Family Law

A few decades ago, the digital currency became a small trend that bloomed into a massive and highly successful tool. Now, people use credit cards, online banking or payment apps to transfer money digitally from one device to the next without so much as seeing a bank teller. Digital money has grown so much that many people use it to invest in digital assets such as cryptocurrency or NFTs.

Your spouse may have invested in some kind of digital asset during your marriage. You may not have known what it was at the time, but you do know it’s a marital asset. Now that you’re considering a divorce, you may want to know if digital assets are included in an asset division.

Here’s what you should know:

What are digital assets?

First, to better understand if digital assets are included in an asset division, you may want to better understand what they are. Cryptocurrency and NFTs are digital investments allowing investors to profit from their appreciation later in life. Cryptocurrency and NFTs don’t work the same, however.

Cryptocurrencies work much like the fluctuating value of gold. As more people invest in cryptocurrency, the less value new crypto-coin is worth and the more value old crypto is worth. Eventually, people who cash out on their investments can trade their crypto-coins for other forms of crypto or real monetary value of equal exchange.

NFTs, conversely, are much like valuable paintings – in fact, NFTs are a type of digital artwork. When someone purchases an NFT, they technically own a one-of-a-kind original artwork. Unlike cryptocurrency, which can typically be traded for with other forms of crypto, NFTs can’t be traded with other NFTs, but can be sold and bought.

How do cryptocurrency and NFTs affect your divorce?

Digital assets, when purchased during a marriage, are typically included in the marital assets. Because of this, when spouses seek a divorce, they must include any digital investments in the asset division plan.

When seeking a divorce, you may want to know what digital assets your spouse is hiding. It won’t exactly be easy if your spouse isn’t willing to give up their investments so easily. You may need to consider reaching out for legal help to know your options.