How to Handle Cryptocurrencies, Social Media, and Online Accounts
As our lives become increasingly digital, so does the process of divorce. Today, couples must consider not only the division of physical property but also a wide array of digital assets—ranging from cryptocurrencies and social media accounts to online subscriptions and digital media libraries. This guide will help you understand what constitutes a digital asset, how these assets are treated in US divorce proceedings, and practical steps to protect your interests.
What Are Digital Assets?
Digital assets are any non-physical items stored or traded electronically that hold value—whether financial, sentimental, or practical. In the context of divorce, digital assets commonly include:
- Cryptocurrencies (Bitcoin, Ethereum, etc.)
- Social media accounts (Facebook, Instagram, Twitter)
- Online accounts (email, cloud storage, online banking)
- Digital media (music, movies, e-books, photos, videos)
- Online businesses and websites
- Loyalty points and rewards programs
Cryptocurrencies in Divorce
Cryptocurrencies present unique challenges due to their volatility, anonymity, and decentralized nature. Here's how they are typically handled in US divorces:
- Full Financial Disclosure: Both spouses are legally required to disclose all assets, including cryptocurrency holdings. If you suspect your spouse is hiding digital currency, forensic accountants can help trace transactions on the blockchain.
- Valuation: Cryptocurrency values can fluctuate dramatically. Courts usually value these assets as of a specific date, and professional valuation may be required to ensure fairness.
- Division: Once valued, cryptocurrencies are divided according to state law—often according to the principle of equitable distribution.
Social Media Accounts
Social media is more than just a way to stay connected—it can also play a role in divorce proceedings:
- Privacy Concerns: Even private posts can be used as evidence in court. Avoid sharing sensitive information during the divorce process.
- Account Ownership: Social media accounts are usually considered personal property, but shared content may be relevant to the settlement.
- Evidence: Posts, messages, and pictures can be used in claims related to alimony, child custody, or asset division.
Online Accounts and Digital Media
- Streaming and Subscription Services: Decide who will retain joint accounts, such as Netflix, Hulu, or Amazon Prime. If a subscription is in one spouse's name, the value of purchased content may be factored into the property division.
- Digital Photos and Videos: These are often sentimental rather than financial assets. Specify in your divorce agreement how these will be shared or duplicated so both parties retain access to family memories.
- Digital Documents: Ensure you have copies of critical digital documents such as tax returns, financial statements, and correspondence. These may be necessary for future reference or legal action.
Practical Steps for Handling Digital Assets
- Inventory Your Digital Assets: Make a complete list of accounts and assets.
- Secure Your Accounts: Change passwords and enable two-factor authentication.
- Back-Up Important Files: Download copies of digital files and media.
- Disclose Everything: Transparency is key to avoiding legal issues.
- Seek Professional Help: A divorce attorney or forensic accountant can help with complex digital assets.
Digital assets are now a core part of modern divorce proceedings in the US. Understanding their value and division process—and taking steps to document and secure them—can help ensure a fair resolution and protect your interests.