When you and your spouse divorce, one of the biggest topics is asset division. Dividing assets is not an easy task. There are houses, cars, and furniture to consider. There may be collectibles and heirlooms. Some couples even have digital assets.
The problem with digital assets, though, is that usually, only one spouse knows about them. Digital assets are easily hidden because they are not tangible in nature. One of the most common types of assets is cryptocurrency, which includes Bitcoin. However, another digital asset that is growing in popularity is non-fungible tokens, or NFTs.
NFTs are a way for digital artists and creators to get paid for their work. They are distinguishable from other tokens due to their unique identification codes and metadata. You can exchange NFTs for money, cryptocurrencies, or other NFTs. They are most popular among investors and collectors.
NFTs are versatile. They can represent digital or real-world items like real estate and artwork. They can also represent a person’s identity and property rights.
NFTs can be worth a lot of money, or they may be worth very little. Still, they need to be identified and valued in a divorce.
However, identity and value are the biggest issues with NFTs. Many people blindly buy digital currency, so there may not be a lot of information about the NFT. On top of that. NFTs are unstable. They are not like a dollar bill, which is always valued at $1. The value of NFTs can increase or decrease by the hour, day, or month. So as you can imagine, determining the valuation of digital currencies is difficult.
What Happens in a Divorce?
The problem with NFTs is that they are not necessarily household names. Not everyone has heard of them, so if you are divorcing, you may not think to ask your spouse about them. However, if you have heard your spouse talking about NFTs or cryptocurrencies at home, it’s possible that they may own some. Don’t neglect to get your fair share of those assets.
In the event of a divorce, a forensic accountant can uncover information about NFTs and other digital assets. That is because as the tokens are minted, they are assigned a unique identifier. Each token has an owner, and the ownership information is publicly available.
If you do find out that your spouse has NFTs, work with your lawyer to figure out the best way to divide them. It may be best to have one person own them while the other spouse gets different assets of the same value. If you do divide them, the goal is to divide digital assets without any tax consequences.
Contact Us Today
Digital currency and assets are easy to hide. If you are divorcing, you should see if your spouse has any.
Don’t overlook your fair share of assets in a divorce. Count on The Law Offices of Michael A. Robbins to help uncover NFTs and split them properly. To schedule a consultation, call 248-646-7980 or fill out the online form.