You invested in digital assets during your marriage, watching its value climb over the years. Now that you are facing divorce, you wonder how to split these digital holdings fairly. Their special nature often makes division confusing. Fortunately, you have several ways to divide these assets and reach a fair settlement.
Why digital assets matters in your divorce
Digital assets have grown greatly in value over recent years. This is why you need to account for these assets during your divorce settlement. Ignoring these valuable electronic accounts and properties can lead to unfair property division and future disputes. But before you divide these assets, you must first figure out which digital asset the court considers marital property.
When digital assets becomes marital property
If you purchased virtual goods, opened e-wallet accounts, and invested in other virtual properties during your marriage, Illinois law considers it marital property. Meanwhile, the virtual assets you owned before marriage remain separate. However, it can become marital property if you mixed it with joint funds. Once you identify which digital properties count as marital property, you can explore your division options.
Three methods to split your digital assets
After you determine your marital assets, you can choose from three division methods:
- Direct transfer: This is where you split holdings between your separate e-wallet accounts, giving each spouse their portion directly.
- Offsetting: This happens when one spouse keeps the virtual accounts and properties while the other receives more real estate or bank account assets in turn.
- Buyout: This occurs when one spouse buys the other’s share using cash or other marital assets.
Each method offers different benefits based on your financial situation. However, you may face unique legal challenges when you use any of these approaches.
Navigating the challenges of digital asset division
Most digital assets usually operate with no central control, which can make divorce harder. Digital wallets can be anonymous, so it may be tough to find all accounts. Prices of virtual goods change daily, making values hard to pin down. Some spouses may also move online funds to hidden wallets before they disclose assets. Thus, finding these assets, valuing them correctly and dividing them fairly often requires strong understanding of Illinois divorce laws and digital assets.