Who Gets the Crypto and NFTs?

As digital assets like cryptocurrency and NFTs become more prevalent, they are increasingly a point of contention in divorce proceedings. Unlike traditional assets such as real estate, bank accounts, and retirement funds, the process of putting a value on digital assets and dividing them can be full of thorns.

If you are going through a divorce in Pennsylvania or New Jersey and own cryptocurrency, NFTs, or other digital investments, talk to a Bucks County family attorney about how these assets are handled when a marriage ends.

 Dividing Cryptocurrency and NFTs in Divorce

Digital assets include a variety of investments and online holdings. Cryptocurrencies, such as Bitcoin, Ethereum, and Dogecoin are well known, but there are also Non-Fungible Tokens (NFTs). Digital art, collectibles, and virtual real estate can all be forms of NFTs. People hold stocks held on digital trading platforms, domain names, in-game items, and digital loyalty points, too. Each of these assets carries unique challenges in terms of valuation and ownership verification.

Pennsylvania follows equitable distribution laws, meaning marital assets are divided fairly, though not necessarily equally. The first step in dividing digital assets is determining whether they are considered marital property or separate property. For example, any cryptocurrency, NFTs, or digital assets acquired during the marriage are typically subject to division. Separate property could be assets acquired before the marriage or those received as gifts or inheritances. These may be exempt from division, unless they were commingled with marital assets.

Once classified, all assets must be properly valued and allocated between spouses. Due to their volatility, determining the fair market value of cryptocurrency at the time of divorce proceedings is key to a fair outcome.

The Importance of Full Disclosure

One of the biggest challenges in dividing digital assets is transparency. Unlike traditional bank accounts, cryptocurrency holdings can be harder to track, as they are stored in digital wallets and decentralized exchanges. Spouses must fully disclose all digital investments during the divorce process.

Hidden cryptocurrency can be uncovered through financial audits, blockchain tracing, and court orders requiring disclosure. Failure to disclose assets can lead to serious legal consequences, including contempt of court or penalties in property division.

Depending on the circumstances, once identified, cryptocurrency and NFTs can be divided in several ways:

• In-kind transfer. One spouse may transfer half of the agreed-upon cryptocurrency or NFT holdings directly to the other.
• One spouse keeps the digital assets and compensates the other with cash or other marital property of equal value.
• Selling the assets and splitting the proceeds may be the simplest solution, though market fluctuations can impact the final amount.

If you are facing divorce and own cryptocurrency or NFTs, working with an experienced Bucks County family attorney helps ensure a fair and transparent division of assets.

Were you recently made aware of the fact that your spouse purchased NFTs during your marriage? The legal team at Kevin L. Hand, P.C. is available to guide you to a full and fair divorce settlement. Call 267-759-2062 to explore your options.