Tag Archive for: digital assets

Dividing Digital Assets in a High-Asset Divorce

Digital assets can be as simple as music libraries and e-books or as complex as cryptocurrency portfolios and online businesses. Social media accounts, domain names, and any online storage of personal data also fall under this category. These assets can hold significant financial or sentimental value, so it’s crucial to know what they are and where they exist. They may be important during your West Virginia divorce.

Worried about protecting your assets during divorce? The team at Pence Law Firm can help. Call us at 304-345-7250 to set up a consultation right away.

 

The Importance of Digital Assets in Divorce

Digital assets play a crucial role in divorce settlements today. As technology becomes more integrated into our lives, these assets can make up a significant part of a couple’s wealth. Overlooking them can lead to an unfair division of property. Digital assets can impact decisions on how to divide property and determine alimony. Their hidden nature can complicate matters, which makes it important for both spouses to fully disclose their digital assets.

 

Recognizing Assets During Divorce

Identification of such assets during a divorce requires a systematic approach. Start by making a list of all your digital properties. This can include social media accounts, online banking profiles, investment platforms, and digital content libraries. Be thorough in your documentation; include account details, passwords, and any ownership agreements. This will help ensure that all digital assets are accounted for and properly evaluated. Keep in mind that some digital assets, like cryptocurrency portfolios, may need special attention due to their complexity.

 

Appraising the Value of Digital Assets

Valuing these assets can be tricky because many of them fluctuate in value. Different types of assets require different valuation methods. For instance, cryptocurrencies need to be valued based on current market rates, which can change frequently. Digital art might require a professional appraiser who understands its market value. The variable nature of digital asset markets means you have to be careful to get an accurate valuation. It’s often helpful to consult experts who specialize in each kind of asset to ensure you get a fair and precise assessment.

 

Equitably Dividing Assets

Equitably dividing assets in a high-asset divorce often requires both negotiation and cooperation. To start, both parties need to agree on what each digital asset is worth. This involves getting accurate valuations from experts and then agreeing on those valuations. This is easier if both parties agree on which experts to use; otherwise, both parties may hire their own appraisal experts and meet in the middle.

One common method is asset exchange, where one party may receive digital assets while the other gets something of equal value, like real estate or other investments. Another approach involves setting up payment plans to balance out differences in asset values. For example, if one spouse receives a high-value digital asset, they might agree to make periodic payments to the other to ensure a fair distribution.

 

Securing Your Assets

Securing your digital assets is an essential step after a high-asset divorce. Start by updating all passwords to ensure that only you have access. Use strong, unique passwords for each account to enhance security.

Another important step is to update account recovery information. Make sure that email addresses and phone numbers linked to your digital assets are current and only accessible to you. This helps prevent unauthorized access.

Back up important digital files and documents regularly. Store these backups in secure locations, such as external hard drives or cloud storage services with robust security features. Keeping copies of essential information ensures you won’t lose access to critical data.

Monitor your accounts for any unusual activity. Regularly check transaction histories, login attempts, and account settings. If you notice anything suspicious, take immediate action to secure your accounts.

Lastly, document all changes you make to your digital assets. Keep a record of updated passwords, recovery information, and backup locations. This documentation can be helpful in case of any disputes or questions that arise later on.

 

Looking for Help with Your Divorce? Call Pence Law Firm

As you navigate your high-asset divorce, make sure you have the legal guidance you need. Call Pence Law Firm at 304-345-7250 or get in touch with us online to discuss your divorce with our family law team.