In an increasingly digital world, divorce proceedings have expanded beyond the division of traditional assets like homes, cars, and bank accounts. Today, digital assets—including cryptocurrency, online businesses, and NFTs—are becoming a significant part of divorce settlements. For Hoosiers navigating divorce, understanding how divorce digital assets in Indiana are handled is essential to protecting financial interests and ensuring a fair outcome.
This guide explains how Indiana courts treat digital property, what counts as a digital asset, how to value these assets, and strategies for dividing them equitably.
What Are Digital Assets?
Digital assets are electronically stored or accessed items that hold value or provide income. In the context of divorce, these assets can take many forms, such as:
- Cryptocurrency (Bitcoin, etc.)
- Online investment portfolios
- Online businesses
- NFTs (non-fungible tokens)
Digital assets should not be overlooked or misunderstood in divorce because they can be just as valuable—if not more—than traditional property.
Indiana Is an Equitable Distribution State
Before exploring specific digital asset strategies, it’s important to know that Indiana follows the “equitable distribution” model for dividing property. This means that all marital property is divided in a fair but not necessarily equal way.
Marital property includes anything acquired by either spouse before or during the marriage, regardless of whose name is on the title or account. This includes digital assets acquired before or during the marriage.
Indiana Code § 31-15-7-4 states:
“(a) In an action for dissolution of marriage under IC 31-15-2-2, the court shall divide the property of the parties, whether:
(1) owned by either spouse before the marriage;
(2) acquired by either spouse in his or her own right:
(A) after the marriage; and
(B) before final separation of the parties; or
(3) acquired by their joint efforts.”
Identifying and Disclosing Digital Assets
The first step to protecting digital assets during divorce is ensuring they are fully identified and disclosed.
Strategies to Ensure Full Disclosure:
- Work with forensic accountants and digital asset specialists.
- Review tax returns for income generated from online sources.
- Search for wallets, account logins, and email addresses associated with digital platforms.
Failure to disclose digital assets can lead to significant legal penalties.
Valuing Cryptocurrency and Online Assets
Once digital assets are identified, the next step is valuing them accurately for division.
Challenges in Valuation:
- Cryptocurrency values fluctuate rapidly.
- NFTs can be difficult to appraise due to limited comparables.
- Valuing digital businesses involves evaluating branding, IP, traffic, subscriber base, and revenue.
Tools and Approaches:
- Use certified appraisers familiar with digital property.
- Establish a valuation date.
- Consider tax implications (capital gains) when evaluating.
Dividing Digital Assets in Divorce
Indiana courts seek a fair division that may not always mean a 50/50 split. Digital assets are subject to the same scrutiny and division principles as physical property.
Potential Solutions:
- Liquidation and division: Sell cryptocurrency or digital holdings and split the proceeds.
- Offset with other assets: One party keeps the digital asset while the other receives a comparable amount in other property.
- Co-ownership agreements: In limited cases, both parties may retain partial ownership, though this requires clear boundaries.
- Buyout agreements: One spouse pays the other for their share in a digital asset.
Online Accounts and Divorce: Practical Considerations
While some online accounts may not have monetary value, they can still have emotional or strategic importance.
Examples:
- Family photo storage on shared Google or iCloud accounts
- Shared social media profiles (e.g., a parenting blog)
- Email accounts with financial or legal correspondence
Best Practices:
- Change passwords on personal accounts.
- Migrate shared content to individual accounts.
- Update two-factor authentication to secure sensitive platforms.
- Review privacy settings and digital security measures post-divorce.
Protecting Your Digital Assets in Advance
For those entering marriage or already married, consider legal planning tools to protect digital property.
- Prenuptial agreements: Can outline treatment of cryptocurrency or digital businesses in the event of divorce.
- Postnuptial agreements: Useful when digital assets are acquired during the marriage.
- Digital asset inventories: Keep a regularly updated list of accounts and valuations.
Proactive management reduces the chance of surprise claims or disputes during a divorce.
Special Note: Digital Fraud and Misconduct
If a spouse attempts to hide digital assets during divorce, Indiana courts may impose serious consequences.
Working with a Divorce Attorney in Indianapolis
Handling digital assets requires specialized legal and financial knowledge. A skilled divorce attorney in Indianapolis will work with financial professionals, forensic experts, and valuation specialists to:
- Identify hidden or misrepresented assets
- Properly value volatile digital property
- Argue for equitable distribution based on the totality of the marital estate
Don’t wait until court proceedings to secure your financial future. An experienced attorney will help you prepare documentation, protect your rights, and avoid costly mistakes.
Conclusion
As cryptocurrency, NFTs, and online income become more common, divorcing couples in Indiana must understand how to handle these unique forms of property. By taking steps to identify, value, and divide digital property appropriately, spouses can protect their interests and avoid future disputes.
Whether you’re initiating a divorce or responding to a petition, knowing your digital rights and working with an experienced legal team is key to a fair resolution.
If you need help with divorce digital assets in Indiana, including cryptocurrency or online account division, contact Ciyou & Associates, P.C. Our seasoned divorce attorneys in Indianapolis will help you navigate complex property issues and safeguard your financial future.
FAQs
Q: Is cryptocurrency considered marital property in Indiana?
A: Yes, if acquired before or during the marriage, cryptocurrency is generally treated as marital property and subject to equitable division.
Q: What if my spouse is hiding digital assets?
A: Your attorney can request discovery or other legal routes to uncover hidden assets. Failing to disclose assets can result in penalties.
Q: Can I keep my online business after divorce?
A: Possibly. Courts may allow one spouse to retain the business if the other receives offsetting assets or financial compensation.
Q: Should I include digital assets in a prenuptial agreement?
A: Absolutely. A prenup can clarify ownership, valuation methods, and division strategies for digital assets.
Q: Are assets acquired before marriage considered marital property?
A: In Indiana, all assets acquired before or during marriage are considered marital property. Indiana Code § 31-15-7-4 states:
“(a) In an action for dissolution of marriage under IC 31-15-2-2, the court shall divide the property of the parties, whether:
(1) owned by either spouse before the marriage;
(2) acquired by either spouse in his or her own right:
(A) after the marriage; and
(B) before final separation of the parties; or
(3) acquired by their joint efforts.”
Q: What sets Ciyou & Associates, P.C. apart when it comes to handling divorce cases?
A: Ciyou & Associates, P.C. stands out for its deep understanding of both Indiana divorce law and emerging digital property issues. Our team stays ahead of legal trends to ensure no asset is overlooked or undervalued. Contact us today if you need representation in a divorce involving digital asset division.
Digital assets are often overlooked but can be highly valuable. Legal guidance is essential to ensure a fair and transparent division.
This blog was written by attorneys at Ciyou & Associates, P.C., and this blog is not intended to provide specific legal advice or solicitation of services as this is an advertisement.
