Dividing property during a divorce may seem simple when you can easily identify bank accounts, cars and real estate. However, digital assets can make the process more complicated. If you or your spouse own cryptocurrency, NFTs, an online business or other valuable digital property, those assets could affect how property gets divided. Because some digital assets can be hard to find or value, they may raise questions about whether both spouses shared a complete picture of their finances.
Why can digital assets be hard to find?
Some digital assets do not show up on regular bank statements. Others may move between digital wallets, online accounts or business platforms. Because of this, you might not know their full value without looking more closely.
Digital assets that may become part of a property division include:
- Cryptocurrency stored in digital wallets
- Nonfungible tokens, also called NFTs
- Online businesses that earn income
- Digital payment accounts with large balances
- Valuable website names or money making websites
Some of these assets may grow in value over time. That could make it more important to identify them during a divorce.
What does California law say about financial disclosure?
California law generally expects both spouses to fully share information about their income, property and debts during a divorce. The state encourages full financial disclosure to support a fair division of community property.
If either spouse leaves out property, including digital assets, the property division process could become more difficult. In some cases, the court may look at more financial records before deciding how to divide the marital property.
How can hidden digital assets come to light?
Sometimes, financial records show signs that more assets may exist. In more complex cases, a forensic accountant may review financial records and digital transactions to help find assets that do not appear in standard documents.
Information that may help includes:
- Tax returns that report investment income
- Bank and credit card statements
- Cryptocurrency transaction records
- Business income records
- Online account activity
Together, these records may give a clearer picture of the marital property and support a more open property division process.
Building a clearer financial picture
Digital assets continue to play a bigger role in many people’s finances. If your divorce involves cryptocurrency, an online business or other digital property, understanding what you own and what each spouse may need to disclose could help reduce disputes. A careful review of your finances, a clear understanding of California’s community property laws and the right legal advice may support a more informed and fair property division.
