Working with Non-Physical Assets
The popularity of cryptocurrencies has grown exponentially over the last few years, and now, more people are getting involved in digital collectibles such as non-fungible tokens (NFTs). However, you may be wondering how assets you cannot physically touch work in a divorce. Read on to learn more about the role of digital assets in a divorce.
The Role of Community Property Laws
Remember that Texas is a community property state, and determining digital asset division may involve recalling when the digital asset was purchased or acquired. Keep in mind that a digital asset may be community property if either party acquired it while they were married; any digital asset purchased or acquired outside of marriage is considered separate property and will not be up for division in the divorce.
When digital assets are divided, they must be divided in a manner that is “just and fair,” just as physical assets must be. While this can mean an equal division for the parties, this may not always be the case.
Concerns Unique to Digital Assets
Digital assets create unique challenges that must be worked through in a divorce. For example, the value of cryptocurrencies and NFTs can change as often as the values of stocks do. A cryptocurrency could be worth thousands of dollars one minute before dropping by that same value in the same week. For value concerns, consider working with an accountant who can help you determine an accurate value for your digital asset.
In addition, transferring digital assets requires that both parties have digital wallets set up or have a means of transferring ownership from one party to the other. However, if the transfer of assets involves password sharing or other security concerns, digital privacy laws may pose an issue. Be sure to speak with your attorney for guidance on how to proceed.
Consult With an Attorney for Answers to Questions
Despite knowing that your spouse has ownership of digital assets, the concept may remain foreign to you or you may have further questions about how these assets may complicate a divorce. For answers to these questions, be sure to consult with your attorney for divorce.
At Verner Brumley Mueller Parker, we can help guide you through even the most complex property division issues. Our team is ready to help. Call us today at (214) 225-6766 or visit us online to schedule your consultation with a member of our team.