What happens to digital assets during property division?

When couples divorce, dividing property often includes more than just physical assets. Digital assets have become an important part of property division. Understanding what happens to these assets helps ensure fair distribution during the divorce process.

Types of digital assets

Digital assets include many things such as online banking accounts, social media profiles, and subscription services. These assets can also include digital photos, videos, and intellectual property. Each type of digital asset may have different rules for division, making it important to know what falls into this category.

Valuation of digital assets

Valuing digital assets can be challenging. Digital assets fluctuate in value, while online businesses may require a professional valuation. Courts may bring in professionals to determine the fair market value of these assets. Proper valuation ensures each party receives an equal share or compensation for these assets.

Division process

During property division, spouses will list all their assets, including digital ones. Both parties need to be transparent to avoid hiding assets. Digital assets get divided similarly to physical property, based on whether they are considered marital or separate property. For instance, digital content purchased during the marriage may be marital property, while personal social media profiles may remain separate.

Legal considerations

Legal concerns include privacy and ownership. Some digital assets, like social media accounts, have terms of service that restrict transferring ownership. When dividing digital accounts, parties may need to negotiate shared access or make arrangements to avoid violating these terms. For digital assets like online bank accounts or cryptocurrencies, updated passwords and security measures are important to maintain security.

Dividing digital assets requires careful consideration. Couples should include these assets in the divorce agreement to avoid future disputes. Being thorough during the inventory process and understanding the value of each digital asset ensures a fair property division.