As the ages of divorcing couples get younger and younger, the legal issues these couples face change as well. One recent development that has now become more popular with Millennials and Generation Z is digital assets, and dealing with them has become a hot topic recently.
Digital assets?
Digital assets can be anything that requires a login that exists online, but it is not just NFTs (Non-Fungible Tokens) and cryptocurrencies, it is also social media businesses, social media influencer brands and empires, digital income streams and other digital assets. Indeed, some very wealthy couples could be millionaires and have their entire income from digital income streams, and family law courts, often stuck in centuries past, are tasked with dividing the Indiana marital estate.
Cryptocurrencies and NFTs
Depending on the nature of the cryptocurrency, NFT or digital coin, they might be easily discernible. However, in other cases, it might not be. However, each spouse might value each differently as well. Due to their volatility, some bring in experts.
For example, the couple may have one Bitcoin that may have a current market value of $30,000, but if one spouse believes that it will gain in value, they may be willing to give up value in another area to keep that entire Bitcoin for themselves. Similarly, an NFT may be valued like a piece of art and have very little current value, but a high future value. This allows for some “horse trading.”
Online income streams
Dividing a traditional business usually meant dividing shares or a percentage of the business. However, with an influencer’s income, it may mean mandating a percentage of income for a given period of income, similar to what alimony may look like, but limited to influencer activities. However, there needs to be a determination on whether the social media presence qualifies as marital property, personal property or some hybrid.
Of course, this is not an exhaustive list of all possible digital assets. It does give a good idea of some of the issues that may come up in the property-division process of a divorce. It can be tricky.