Digital assets such as cryptocurrency and non-fungible tokens (NFT) have been steadily gaining popularity. With so many people investing in the market of alternative currency, it is essential to understand how assets such as NFTs will be divided during an Alpharetta divorce.
Some of these digital forms of property can have extremely high values. It is vital to enlist the help of a qualified division of assets attorney to ensure everything is allocated fairly. Contact the Atlanta Divorce Law Group today to schedule a free consultation with a knowledgeable member of our team.
A Non-fungible token or NFT is a unique digital asset programmed to represent the ownership of a physical or digital item without the ability for it to be changed or tampered with. While most people who have heard of this technology only relate it to its artistic side, NFTs are much more than that. Examples of NFTs include:
In addition, NFTs can be used in real estate to represent and transfer the deed of ownership of houses and land. Businesses can also utilize non-fungible tokens in supply chain management to track the goods and services of multiple organizations. If NFTs still seem like a confusing concept, contacting a credible attorney can help most individuals better understand what they are and how they will be divided during a divorce.
Splitting up NFTs and other digital assets in an Alpharetta divorce can be a complex process. Although it is not tangible, this form of property is subject to the same guidelines as physical marital properties such as bank accounts, homes, and gifts. If NFTs were owned or acquired before a marital union, they are a personal asset and not considered during division. In contrast, NFTs acquired during the marriage are subject to equitable distribution or exchange. With this in mind, some of these digital currencies can be easily stored and transferred, and if a couple can come to terms on their own with how they will be divided, it might make the proceeding easier.
One of the characteristics of NFTs that can make the process of apportioning them more difficult is the evolving nature of their worth. The cryptocurrency market changes daily, and while it may seem that the assets in question are one value, they could be worth much more or much less in a matter of days or weeks.
Sometimes, selling the NFT and splitting the profit can be a solution. However, this means spouses would have to agree on relinquishing the potential for future worth increase by no longer holding ownership of the asset.
Individuals might also attempt to hide this property. There are ways to research ownership of NFTs and other digital assets that a meticulous attorney can take the lead in if a party suspects their spouse of withholding information.
If you and your spouse are considering a dissolution of marriage, or have already started the process and you have questions about how NFTs will be divided in Alpharetta, reach out. Our savvy team of attorneys can help you understand digital assets like NFTs and crypto, and ensure they are fairly split between you and your spouse.
Call the Atlanta Divorce Law Group today to learn more.