As Millennials and Generation Z divorce with increasing frequency, digital assets become a much more important piece of the divorce pie. After all, digital assets are separated in the Mobile, Alabama, property division process, just like any other asset, but because of their more fluid nature, they can be much harder to actually separate.
Understanding digital assets
Digital assets are a large asset class that can include both digital assets and digital income streams. Assets include non-fungible tokens (NFTs), cryptocurrencies, tokens, etc. Digital income steams can be social media influencer businesses, websites, etc.
NFTs and cryptocurrencies
Currently, NFTs, cryptocurrencies and other similar tokens are largely unregulated, volatile and can be very lucrative. This means that the valuations can be problematic and complicated, especially as a divorce is rarely a quick affair.
For example, an NFT could double or triple in value in a matter of days or lose a similar amount in that same amount of time, which can drastically change the property division breakdown. This is the same with many cryptocurrencies.
Because of the valuation issues associated with NFTs, cryptocurrencies, etc., for marriages with many of these digital assets, you may need a Mobile, Alabama, accountant or some other digital asset expert. You may also need to just have an honest conversation with your soon-to-be ex-spouse because they may value those crypto-assets more than you and be willing to horse trade other assets to keep them.
Digital income streams
Many younger Americans earn their living online through social media. This has been coined social media influencing or social media influencers. Determining how to categorize this as marital property, separate property or some kind of hybrid property will come down to when the social media enterprise began, when the monetization began and where you live. To be clear, often, this is treated like any other job, and your income from it can be used to calculate child and spousal support.
Where the issues can become especially complicated is where the social media influencing is done as a family, rather than individually. How do you apportion value and income moving forward when the enterprise has been done together historically? Again, this will likely require the services of a Mobile, Alabama, expert.