The digital age is amazing in many ways, but it also creates scenarios where it can be hard to know where all your money (or your spouse’s money) could be hiding. NFTs, or non-fungible tokens, are a way for digital artists and creators to get paid for work through a digital ledger and the cryptocurrency Ether (more commonly called Ethereum).
The problem with these digital assets is that they fluctuate in price significantly with the cryptocurrency market. Getting a true value for a piece of artwork or even the currency itself is not easy from day to day.
This can mean that while it appears that your spouse only has $500 in assets, for example, they could actually be worth much more if the market improves. They may also have spent down a larger portion of your marital assets than you thought.
The division of cryptocurrency and NFTs during divorce
It can be tough to divide crypto and NFTs during a divorce because of how quickly they fluctuate and change. While the currency is likely marital property if it was purchased during your marriage, you may find it difficult to find out about the currency and to determine how to value it for separation.
How is cryptocurrency valued? How will an NFT be priced for the purpose of your divorce? That depends on a few factors. Usually, assets are valued on the date of a separation. So, if you separated two months ago and the currency was worth $100,000 at that time, that’s the number you will probably work with during the divorce. Of course, if the NFT or cryptocurrency’s value decreases, that could be problematic and make the situation more complex. If it goes up, the original valuation still stands in most situations.
Crypto and NFTs provide anonymity that can hurt in a divorce, especially if assets are hidden away with them. However, if you’ve heard your spouse talking about NFTs or cryptocurrencies at home, it may be valuable to discuss the potential that they have some and what it would take for you to get your fair share of those assets.
from Texas Bar Today https://ift.tt/pfedXLb
via Abogado Aly Website
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