How to Divide Digital Assets in a Divorce

In today’s world, a significant portion of our lives, and now oftentimes our wealth, exists online. From cryptocurrency and NFTs to cloud storage, social media, and digital business ventures, dividing digital assets during a divorce has become increasingly complex. Understanding how Washington law treats these assets can help protect your interests and ensure a fair division.

What Are Digital Assets?

Digital assets include anything of value stored electronically. Common examples include:

• Cryptocurrency (e.g., Bitcoin, Ethereum)
  
  
• NFTs and digital collectibles
  
  
• Online investment or trading accounts
  
  
• Digital businesses or income streams (e.g., YouTube channels, Etsy shops)
  
  
• Domain names or websites
  
  
• Cloud-stored intellectual property or photos
  
  
• Loyalty points and digital wallets

Even seemingly personal items, like digital photo libraries, can become part of a property division discussion.

How Washington’s Community Property Laws Apply

Washington is a community property state, which means most assets acquired during marriage are presumed community/jointly owned property. This includes digital assets if they were created, earned, or purchased during the marriage. For instance, cryptocurrency purchased with marital funds or a monetized YouTube channel developed while married could be considered community property.

Assets owned before the marriage, or those acquired through inheritance or gift, may be treated as separate property. However, if those assets are commingled—such as using marital funds to invest further in crypto, they can lose their separate character.

Challenges in Dividing Digital Assets

Digital assets pose unique challenges, including:

• Valuation – Cryptocurrency and NFTs can fluctuate dramatically in value, making it difficult to determine a fair division point.
  
  
• Tracking and Disclosure – Some assets, like cryptocurrency, are easily hidden or transferred without paper trails. Full disclosure is legally required, but enforcing transparency may require digital forensic investigation.
  
  
• Access and Control – Gaining access to digital accounts can be difficult if one spouse controls the passwords, keys, or login information.

Protecting Your Interests

If you suspect your spouse holds digital assets, your attorney may work with forensic accountants or digital investigators to identify and value them accurately. Keep detailed records, including purchase histories, exchange statements, and account credentials where possible.

Avoid attempting to move or sell digital assets unilaterally. Courts take a strict view on the concealment or dissipation of marital property, and violating court orders can have serious legal consequences.

Planning Ahead
When possible, couples can simplify digital asset division by:

• Including digital property specifically in financial disclosures.
  
  
• Agreeing on valuation dates to account for price volatility.
  
  
• Deciding whether to divide the assets themselves or offset their value with other property.
  
  
• Establishing future rules for handling jointly used digital accounts or data.

Work with Experienced Guidance
Dividing digital assets in a divorce requires legal, financial, and technical understanding. At Magnuson Lowell, P.S., our experienced Washington divorce attorneys work closely with financial professionals to help ensure your digital property is properly identified and fairly divided.

We offer free telephone case evaluations. Contact us today 425-800-0576 to see if we’re a good fit to help protect you in this new digital time.