Modern divorce cases must address property and assets that didn’t exist a generation ago. Digital assets—from cryptocurrency to social media accounts to online businesses—represent real value that must be identified, disclosed, valued, and potentially divided during divorce proceedings. As our lives become increasingly digital, divorce lawyers know that family law must evolve to address these new forms of property. Understanding how digital assets are treated in divorce helps ensure comprehensive, fair settlements that account for all marital property, not just traditional assets. Below, our friends at Merel Family Law explain important factors concerning digital assets in divorce.
Cryptocurrency and other digital currencies present unique challenges in divorce. Bitcoin, Ethereum, and countless other cryptocurrencies can represent substantial value, yet they’re designed to be difficult to trace and can be easily hidden or transferred. Full disclosure of cryptocurrency holdings is legally required, just like any other asset. This includes not only the current value but also information about wallets, exchanges, transaction history, and any transfers made during the marriage or separation period.
Valuing cryptocurrency is complicated by extreme volatility. A Bitcoin holding worth significant money one day might be worth substantially more or less the next. Parties must agree on a valuation date, with the date of separation or date of trial being common choices. Some couples agree to divide cryptocurrency holdings in kind—each receiving a percentage of the actual coins—which allows both parties to benefit or suffer from future value changes equally. Others prefer one party to buy out the other’s interest at an agreed value, though this requires careful consideration of tax implications and transfer mechanisms.
The pseudonymous nature of cryptocurrency makes verification difficult. Unlike bank accounts where subpoenas can reveal holdings, cryptocurrency stored in private wallets may be known only to the owner. Forensic examination of computers, phone records, email accounts, and financial records can uncover evidence of cryptocurrency transactions. Bank records showing transfers to cryptocurrency exchanges, tax returns reporting cryptocurrency income, or even casual mentions in emails or texts can lead to discovery of hidden digital assets.
Social media accounts raise novel questions about value and ownership. For influencers, content creators, or businesses that have built substantial followings, social media accounts represent genuine business assets with monetization potential. A YouTube channel generating advertising revenue, an Instagram account used for sponsored content, or a TikTok presence that drives product sales all have economic value beyond sentiment or personal interest.
Valuing social media accounts requires examining multiple factors: follower count, engagement rates, revenue history, niche market, and growth trends. Some accounts might be valued based on their income-producing history, while others might be valued based on comparable account sales or advertising rate calculations. The complexity increases when accounts were built during marriage using joint effort or resources, making them marital property subject to division rather than one spouse’s separate property.
Digital photos and videos, particularly those stored in cloud services, can create disputes. Beyond sentimental value, some digital media may have commercial value, such as professional photography or video content. Even personal family photos raise questions about who retains what copies. While courts rarely spend significant time on purely sentimental items, establishing clear agreements about digital photo libraries, shared cloud storage, and rights to use certain images prevents future conflicts.
Email accounts, particularly those containing business communications or important records, must be addressed. While personal email is generally considered individual property, business email accounts or accounts containing important marital financial records may need special handling during divorce proceedings. The discovery process may require review of emails to find relevant financial information, requiring careful balance between legitimate disclosure needs and privacy rights.
Online businesses and domains represent increasingly common marital assets. An e-commerce store, blog, online course business, or even valuable domain names may constitute marital property if created during marriage or enhanced with marital resources. These digital businesses require valuation just like brick-and-mortar businesses, examining revenue, expenses, growth potential, and market comparables. The technical knowledge required to operate some online businesses may influence how they’re divided—similar to traditional businesses, one spouse might buy out the other’s interest rather than attempting to co-own a business post-divorce.
Digital intellectual property, including copyrights, patents filed during marriage, or digital creative works, all fall under property division rules. An e-book written during marriage, software code developed by one spouse, digital art, music, or other creative works may have current value or future earning potential that must be considered in property division.
Streaming service accounts, gaming accounts with purchased content or in-game assets, subscription services, and similar digital property might seem trivial but can add up to substantial value. While courts likely won’t spend time dividing every Netflix account, comprehensive settlement agreements should address how these various accounts will be handled—which spouse retains which services, whether accounts will be shared temporarily, and how any stored value or purchased content is divided.
Digital evidence considerations are equally important. Social media posts, dating app usage, digital spending records, location data, and other digital footprints can all become evidence in divorce proceedings. Posts showing extravagant purchases might be relevant to financial disclosure; dating app activity might be relevant to separation dates; location data from phones or vehicles might be relevant in custody disputes. The digital trail people leave can have significant implications in divorce cases, making it essential to understand how digital information might be discovered and used.
Privacy protections apply to digital information, but they’re not absolute. While one spouse generally cannot access the other’s password-protected accounts without permission, the legal discovery process can compel production of relevant digital information. Courts balance privacy interests against the legitimate need for information in divorce proceedings.
Digital assets are increasingly valuable, legally complex, and easy to overlook in divorce proceedings. From cryptocurrency holdings to social media presence to online business ventures, comprehensive disclosure and fair valuation of digital property ensures equitable settlements. Technology-savvy legal counsel helps identify digital assets that might otherwise be missed, values them appropriately, and ensures they’re addressed in final agreements. As our lives and assets become more digital, divorces must evolve to protect both parties’ interests in this new form of property, ensuring that settlements reflect the full picture of marital assets in our increasingly digital world.