Have you considered the value of your digital assets? Today, we are not just dividing houses, cars, and retirement accounts when couples divorce. More and more, digital assets have become a central part of property division, especially here in Arizona. These assets are often overlooked, but they carry real financial weight and deserve careful attention.
What Counts as a Digital Asset?
Arizona is a community property state, which means that any property acquired during the marriage, whether physical or digital, is typically subject to equal division.
Digital assets can include:
- Cryptocurrencies like Bitcoin or Ethereum
- NFTs and blockchain-based collectibles
- Online businesses, YouTube channels, or digital storefronts
- Royalties from e-books, courses, or other digital works
- Cloud storage accounts with intellectual property
- Airline miles, subscription services, or digital loyalty programs
All of these have value, and the court can consider them part of the marital estate.
The Challenge of Tracing Digital Assets
One of the complications that comes with digital property is how easily it can be hidden. Cryptocurrency, in particular, can be stored on digital wallets or transferred in ways that are difficult to detect if you do not know what to look for.
This is why Arizona law requires full financial disclosure in every divorce. It is also why working with experienced legal and financial professionals is so important. A skilled attorney and possibly a forensic accountant can help uncover and properly value these assets.
When Digital Spending Becomes Marital Waste
Even though Arizona follows a no-fault divorce approach, meaning the court does not assign blame for the breakdown of the marriage, there are still consequences when one spouse misuses marital funds.
For example, if someone spends large sums of money from a joint account to buy cryptocurrency for someone outside the marriage or uses funds to support online activities related to an affair, the court may consider this marital waste. In those cases, the other spouse may be awarded a larger share of the remaining marital assets to balance out the loss.
What You Can Do to Protect Yourself
If you are concerned that digital assets could play a role in your divorce, there are a few steps you can take right away.
First, gather documentation. This includes account statements, login credentials, and transaction histories. The more records you have, the easier it will be to identify and value these assets.
Second, understand that just because something lives online does not mean it is immune from division. Arizona courts treat digital property just like physical assets. If it holds financial value, it matters.
Third, speak with an attorney early in the process. Having legal guidance from the beginning will help ensure you are not overlooking assets that could significantly impact your financial future.
Prepare for the Digital Side of Divorce
Digital assets are now a regular part of divorce proceedings in Arizona. They can be traced. They can be valued. And if marital waste is involved, they can even shift how the remaining property is divided.
If you are going through a divorce and digital assets are part of the equation, please do not try to navigate this on your own. Our family law team is here to help you understand your rights, protect your interests, and move forward with confidence.
Reach out today to schedule a consultation. We are ready to walk you through it.