How Are Non-Fungible Tokens and Other Cryptocurrencies Evaluated in a Divorce?
A malicious spouse hiding assets during a divorce is nothing new, especially if he or she was the primary person controlling and overseeing a marriage’s complex financials. With advances in financial technology, resources for hiding financial assets have grown and not disclosing under-the-radar gains might be even more tempting. While that spouse may think he or she is one step ahead of you, an attorney with the resources to track down and evaluate hard-to-find digital assets can work with you.
It is important to be aware of the possibility that non-fungible tokens and other cryptocurrencies might come in to play a role in your Illinois divorce. If you know or sense that the other spouse might possess these, you should not only learn about them but also uncover this crucial information with a skilled team of Chicago divorce attorneys by your side. It is vital for the judge in your divorce case to know about this, so that he or she can properly decide how these holdings will be divided fairly in your divorce. Contact Nottage and Ward, LLP at (312) 332-2915 so that we can put our experience to work for you.
When Non-Fungible Tokens and Cryptocurrencies Might Be a Part of Your Divorce
Non-fungible tokens are a digital representation of unique ownership for original, one-of-a-kind assets. They operate on what is known as blockchain technology, which is also associated with cryptocurrencies. Non-fungible tokens are tied to the Ethereum blockchain, and the valuable assets they can digitally represent may include:
- Video and audio files
- Important documents tied to real-world possessions
Owners can purchase their non-fungible tokens with digital currency in their possession, stored on a digital wallet. If they purchase tokenized assets on the Ethereum blockchain, this will be with the cryptocurrency known as Ether. Once a purchase is complete, the owner becomes the only official possessor of the non-fungible token and this becomes public record.
When dealing with a spouse who has an in-depth knowledge of how this digital technology works, even access to an advisor, this is when dividing assets during an Illinois divorce can become a bit tricky to navigate. If you are not aware that the other spouse holds these tokens and cryptocurrency, you would not think of tracking every one of them down and bringing them to the attention of the judge in your divorce.
The blockchain that allows this financial technology to exist also cuts out the need for a banking institution to initiate a cryptocurrency transaction between two users. What happens on the blockchain is peer-to-peer and enables users to make transactions without disclosing personal information. Users are instead only known by code. While the government is not involved in an actual transaction, lawmakers do continue to weigh the extent of government regulation of cryptocurrency. So, laws in the future may still have much to say about this subject.
Discovering Digital Assets
You now have an idea of how a spouse can evade undetected with various types of digital assets. This is what makes different forms of discovery in an Illinois divorce an especially crucial step. With the help of a team of attorneys, pulling in specialized resources to track the other spouse’s digital activity can be to your benefit, both in uncovering and valuing these assets. Methods may include:
- Observing suspicious bank account withdrawals and transfers for buying digital assets
- Auditing all assets spouses acquired while together
- Consulting with non-fungible token and cryptocurrency experts
- Contacting technology specialists who may be able to track blockchain activity
Cryptocurrencies may change in value over time, increasing or decreasing in their worth. The reasons behind this may depend on multiple real-world circumstances related to the global economy and other factors. Having an expert involved when sorting out marital assets that include non-fungible tokens and cryptocurrency can help add insight into the process of obtaining your rightful share.
When it comes to the division of marital assets in Illinois, the judge in your divorce case will decide the matter based on what is equitable if you and your spouse cannot come to an agreement. This means that the judge will determine what is fair to both parties. He or she will take into account different financial aspects of the marriage, including assets acquired with marital funds.
Speak With an Attorney About Digital Assets in Divorce
With all the complicated details that they introduce, it can be overwhelming at first to consider that digital assets may be a part of your divorce. The good news is that you do not have to figure it all out on your own. Our team has the experience and skill to dig into hidden assets of the other spouse in a divorce that may include non-fungible tokens and cryptocurrencies.
We take discovery in divorce very seriously so that we can uncover information that will help you receive what is fair when everything concludes. The Chicago divorce attorneys at Nottage and Ward, LLP want to help you during this stressful time. Contact us today at (312) 332-2915.
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