Posted in Divorce
As we dive into 2025, divorces are no longer just about dividing houses, cars, or bank accounts. Digital assets, from cryptocurrency to NFTs (non-fungible tokens), are becoming a major part of marital property. With more people investing and holding value online, courts and lawyers are navigating uncharted territory to determine what counts as marital property and how it should be divided.
We’d like to thank our friend at Vayman & Teitelbaum, P.C. for the following discussion about splitting digital assets and NFTs, and what counts as marital property in 2025.
Defining Digital Assets
Digital assets are any assets that exist primarily in electronic form and hold value. They can include:
- Cryptocurrency: Bitcoin, Ethereum, and other blockchain-based currencies.
- NFTs: Digital art, collectibles, or other blockchain-based tokens.
- Online accounts: Virtual real estate in games, domain names, or monetized social media accounts.
- Other intangible assets: Digital royalties, cryptocurrencies tied to contracts, or investment platforms.
Because these assets exist in digital form and often fluctuate in value rapidly, they bring unique challenges to divorce proceedings.
Marital Vs. Separate Property
In most U.S. jurisdictions, marital property includes assets acquired during the marriage, while separate property generally includes assets obtained before marriage or by gift or inheritance. Digital assets are no exception, but courts need to look carefully at:
- Acquisition date: Was the cryptocurrency purchased or mined during the marriage? If yes, it’s likely marital property.
- Source of funds: If one spouse bought NFTs with separate funds, those may remain separate property, but if marital funds were used, they may be divided.
- Documentation: Keeping clear records of purchases, transfers, and valuations is crucial. Courts rely on financial statements, wallets, and transaction histories.
Because digital assets can be transferred quickly, it’s important to track who owns what and when. Attempting to hide or move digital assets can create legal complications, potentially even leading to contempt findings.
Valuing Digital Assets
One of the trickiest parts of splitting digital assets is valuation. Cryptocurrencies can swing dramatically in value from one day to the next, and NFTs often have no set market price.
Courts may consider:
- Market value at the time of separation: This provides a snapshot of what the asset was worth when the marital estate is being divided.
- Professional appraisals: Blockchain analysts or NFT marketplaces can provide valuation opinions.
- Potential for future appreciation: Some courts may consider projected growth or royalties associated with the asset.
Valuation disputes are common, so it’s important to have clear records and professional testimony if needed.
Dividing Digital Assets
Once valuation is determined, courts generally aim for equitable distribution, which doesn’t always mean 50/50 but rather a fair division based on the circumstances. Options may include:
- Direct division: Each spouse receives specific digital assets or amounts of cryptocurrency.
- Cash-out arrangements: Converting digital assets into cash or other tangible property for division.
- Buyouts: One spouse may buy out the other’s interest in certain assets.
Transparency is key. Digital assets can be complex and volatile, so each spouse and their divorce lawyer must be diligent in accounting for them.
Planning Ahead
For couples managing significant digital assets, proactive steps can make the division smoother:
- Keep detailed records: Track purchases, transfers, and valuations.
- Consider agreements: Prenups or postnups can clarify ownership and division rules.
- Work with professionals: Accountants and blockchain specialists can provide clarity and protect your interests.
The Bottom Line
Digital assets are no longer fringe items; they are core parts of marital estates in 2025. From cryptocurrencies to NFTs, courts treat them like any other property, but the fast-paced and intangible nature of these assets makes documentation, transparency, and skilled guidance more critical than ever.
Whether you’re navigating a divorce or planning, understanding how digital assets are classified, valued, and divided can save you headaches and ensure a fair outcome.
