Dividing Digital Assets in Your Florida Divorce

Twenty years ago, dividing property in a divorce meant dealing with houses, cars, bank accounts, and retirement funds. Today, couples accumulate wealth in forms that didn’t exist a generation ago. Cryptocurrency portfolios. Online businesses. Digital content libraries. Gaming accounts worth thousands of dollars. Florida courts are still catching up to this reality.

Digital Assets Are Marital Property

Florida’s equitable distribution laws apply to digital assets just like physical ones. If you acquired cryptocurrency during your marriage, it’s subject to division. If your spouse built an online business while you were married, you likely have a claim to its value.

The challenge isn’t the legal principle. It’s the practical application. How do you value a Bitcoin wallet? How do you split an Etsy shop? These questions require creative solutions.

Cryptocurrency Complications

Crypto presents unique challenges in divorce. Values fluctuate wildly, sometimes by significant percentages in a single day. The asset that was worth $50,000 when you filed might be worth $30,000 or $70,000 by the time you reach settlement.

There’s also the discovery problem. Unlike bank accounts, crypto isn’t automatically reported to the IRS or anyone else. A spouse who wants to hide assets might be tempted to move holdings to undisclosed wallets. Forensic accountants who specialize in blockchain analysis can sometimes trace these movements, but it adds complexity and cost to the process.

For disclosure purposes, you should document all cryptocurrency holdings, including the coins or tokens owned, wallet addresses, exchange accounts, and transaction history during the marriage.

Online Businesses and Side Hustles

Many people run businesses that exist entirely online. Dropshipping stores. Content creation channels. Freelance consulting practices. These businesses have real value, but that value can be hard to pin down.

Valuation typically considers revenue, profit margins, growth trajectory, and transferability. A YouTube channel built around one spouse’s personality might not have much value without that person running it. An e-commerce store with established suppliers and customer base might be worth substantial money regardless of who operates it.

The spouse who built the business often wants to keep it. That usually means buying out the other spouse’s share, either through cash payment or by offsetting the value with other assets.

Social Media and Digital Content

This gets into murkier territory. Does a spouse have a claim to an Instagram account with a million followers? What about a library of digital photos that could be licensed commercially?

Florida courts haven’t fully sorted this out yet. Generally, accounts with demonstrable commercial value get treated like business assets. Personal accounts without revenue potential are less likely to factor into property division.

Digital photo libraries are interesting because both spouses might want access to family photos. Courts can order that copies be provided to both parties, though ownership of commercial rights might still need to be divided.

Gaming and Virtual Property

It sounds trivial until you look at the numbers. Some gaming accounts contain virtual items worth thousands of real dollars. Professional gamers have accounts worth far more. These are assets, and they can be subject to division.

The same applies to domain names, website portfolios, and other virtual property that has resale value.

Protecting Yourself

If you’re going through a divorce and digital assets are involved, document everything. Screenshot account balances. Print transaction histories. Make sure your attorney understands what digital assets exist and approximately what they’re worth.

Be aware that your spouse might try to hide digital assets or undervalue them. If you suspect this is happening, forensic specialists can investigate.

Also think about account security. Shared passwords should be changed. Two-factor authentication should be enabled on accounts you want to protect. This isn’t about hiding anything from the legal process. It’s about preventing unauthorized access during a contentious time.

The Division Process

Like any marital property, digital assets get divided equitably, which doesn’t necessarily mean equally. Courts consider many factors including each spouse’s financial situation, contributions to the marriage, and future needs.

Sometimes digital assets are sold and proceeds split. Sometimes one spouse buys out the other’s interest. Sometimes equivalent value is offset with other assets. The right approach depends on your specific situation.

Working with an attorney who understands both family law and the nature of digital assets can help ensure nothing gets overlooked and that valuations reflect reality.