Protecting Digital Assets in a Divorce: What Florida Couples Need to Know in 2024

Divorce in the digital age is a whole different ballgame. Gone are the days when splitting assets just meant dividing the family home, the cars, and maybe the dog. Now, in 2024, we have to talk about the elephant in the room: digital assets. Yep, that’s right — your Bitcoin, your NFT collection, and even your shared Netflix password might be up for negotiation. So, grab your phone (you might want to check your crypto balance while you read this), and let’s dive into what couples undergoing divorce in Florida need to know about protecting their digital assets.

 The Rise of Digital Assets

First things first — what exactly are digital assets? Well, digital assets can be anything from cryptocurrencies like Bitcoin and Ethereum to NFTs (non-fungible tokens, aka that pixelated cat you bought for $5,000). They can also include intellectual property rights to online businesses, digital art, and even social media accounts. Yes, your Instagram influencer account might be considered an asset if it generates income.

The key point here is: Digital assets are now real assets in the eyes of the law. Family courts in Florida treat them just like any other form of property, meaning they need to be identified, valued, and divided.

Florida’s Equitable Distribution Law

When it comes to splitting assets in Florida, the rule of thumb is “equitable distribution.” Don’t confuse this with equal distribution, though — it doesn’t mean a 50/50 split. Under Florida Statute 61.075, the courts will divide assets based on what they consider fair, which could mean one spouse gets more than the other depending on various factors like contributions to the marriage or the economic circumstances of each party.

So, if you’ve been mining crypto in your spare time or running a side hustle selling digital art, be prepared for these to be factored into the overall divorce settlement.

How to Identify and Value Digital Assets

One of the trickiest parts of dealing with digital assets in a divorce is figuring out what exactly you have and how much it’s worth. Cryptocurrencies, for example, are notoriously volatile. You might have had a small fortune in Bitcoin last year, but by the time the divorce rolls around, it could be worth half as much. On the flip side, it might have skyrocketed in value, making that digital wallet more valuable than your house!

Here’s the tricky part: Identifying all digital assets. In many divorces, one spouse might be more tech-savvy and could try to hide assets in digital wallets, off-shore exchanges, or even use decentralized platforms where transactions aren’t easily traceable.

To prevent this, both spouses need to fully disclose all assets, digital or otherwise, during the divorce proceedings. If someone tries to pull a fast one, it’s not going to look good in front of the judge. In some cases, you might even need to hire a forensic accountant with experience in digital asset tracking.

Pro tip: If you suspect your spouse is hiding digital assets, Florida law gives you the right to subpoena financial records, including digital wallets and transaction histories. Florida courts don’t deal kindly with sneaky behavior.

Dividing Digital Assets: It’s Complicated

Once you’ve identified your digital assets, the next question is: How do you split them? Dividing digital assets isn’t as simple as dividing up the furniture. It’s not like you can cut a Bitcoin in half (well, technically you can divide Bitcoin into tiny fractions, but that’s not the point).

In many cases, it makes sense to assign a value to the digital asset at the time of the divorce and then adjust the distribution of other assets accordingly. For example, if one spouse gets the house, the other might get the cryptocurrency wallet to balance things out. Alternatively, you could sell the digital assets and split the proceeds, but that requires both parties to agree to sell — and good luck convincing your spouse to sell their prized NFT of a rainbow-colored llama. Yet, it totally depends on case to case, based on its unique circumstances.

Protecting Your Digital Assets

Thinking ahead about how to protect your digital assets? Smart move! Whether you’re already in the middle of a divorce or just planning for the future, it’s crucial to consider how digital assets are handled.

Prenups and Postnups: If you’re the tech-savvy one in the relationship, a prenuptial or postnuptial agreement can specify how digital assets are divided if things go south. Think of it as a way to keep your virtual fortune safe, while keeping things clear and amicable.

Separate Accounts: If you’ve got an online business or crypto portfolio, make sure you’re keeping good records and maintaining separate accounts if those were acquired before marriage. Mixing marital and non-marital funds can muddy the waters when it comes to division.

Documentation: Document everything—especially crypto trades and NFT acquisitions. Keep clear records of when you bought these assets, what you paid, and any appreciation during the marriage.

Pro tip: If you don’t have a prenup or postnup, it’s never too late. Having clear terms about digital assets could save you from a major headache in the future.

The Bottom Line

Divorces have always been complicated, but when you throw digital assets into the mix, things can get even more challenging. From tracking down cryptocurrency wallets to dividing up your NFT collection, understanding how digital assets are handled in a divorce in Florida is key to protecting what’s yours.

Remember, Family Courts in Florida view digital assets the same way they do physical ones. Anything acquired during the marriage is considered marital property, and you’ll need to be prepared to disclose and divide it.

If you’re heading toward a digital asset division (or suspect it may happen), make sure to document everything, keep records, and consider hiring the right professionals to ensure you’re not left out in the cold—digital or otherwise.

Pro tip: When in doubt, talk to a family law attorney who’s experienced in handling digital assets cases in a divorce in Florida. After all, it’s 2024, and divorce isn’t just about who gets the house anymore—it’s about who gets the crypto too!

Ready to secure your digital assets in a divorce in Florida? Call DeWitt Law Firm today and protect what’s yours!