Best Practices for Valuing and Locating Digital Assets During Your Divorce
By Gregory Gilston, Esquire
March 1, 2023
Divorce is a difficult and emotional process, and it can become even more complicated when digital assets are involved. In today's world, many couples have accumulated significant digital assets, including cryptocurrencies, NFTs, digital photos and videos, social media accounts, and even online businesses. In this blog post, we'll explore some best practices for valuing and locating digital assets during a divorce.
1. Understand what constitutes a digital asset -- The first step in valuing and locating digital assets during a divorce is to understand what qualifies as a digital asset. This can include:
Cryptocurrencies such as Bitcoin, Ethereum, and Litecoin
Non-Fungible Tokens (NFTs)
Digital files such as photos, videos, and music
Social media accounts such as Facebook, Instagram, and Twitter
Online businesses and intellectual property such as websites and domain names
Digital storage devices such as external hard drives and cloud storage accounts
2. Gather all relevant information -- Once you have identified the digital assets in question, it is important to gather all relevant information about them. This includes login credentials, passwords, and any associated email addresses or phone numbers. Without this information, it may be difficult or even impossible to access the digital assets and accurately value them.
3. Work with a digital asset expert -- Valuing digital assets can be complex, especially when it comes to cryptocurrencies and online businesses. Consider working with a digital asset expert who can help you navigate these assets and accurately value them.
4. Use tools to locate digital assets -- Locating digital assets can be challenging, especially if one spouse is attempting to hide them. There are a number of tools available that can help you locate digital assets, including:
Digital forensic software that can uncover hidden files and folders
Blockchain explorers that can track cryptocurrency transactions
Social media monitoring tools that can track account activity and logins
5. Document everything -- It is essential to document everything related to digital assets during a divorce. This includes all communications between the parties, as well as any documentation related to the assets themselves. This documentation will be important in the event of any disputes or legal proceedings related to the digital assets.
In conclusion, valuing and locating digital assets during a divorce can be a complex and challenging process. However, by following these best practices, you can help ensure that all digital assets are properly accounted for and that you receive your fair share of these assets during your divorce. If you are unsure about how to proceed, consider consulting with a legal or financial expert who can help guide you through the process.
For more information on this topic, join me for an upcoming Strafford live webinar, "Digital Assets in Divorce" on Tuesday, May 2, 1:00pm-2:30pm EDT. Click this link for more information: https://www.sp-04.com/r.php?products/tfjflghlra