Divorcing millennials introduce new challenges for divorce lawyers, who must consider an increasing number of digital assets and income streams. In today’s divorces, digital assets become a critical topic. Digital assets are significant for estate planning, they’re also important for marital property distribution.
Some digital assets, like images and family heirlooms, will be more emotive than monetary. Other digital assets, particularly those in a very family-owned firm, could, nevertheless, be worth plenty of cash during a divorce.
NFTs (Non-Fungible Tokens), cryptocurrencies, and social media are all popular ways to improve one’s net worth. If people are married and seeking divorce after acquiring assets through their digital labor, divorce attorneys must appropriately identify and evaluate these assets and income streams as part of the divorce process.
The method of distributing cryptocurrency does not have to be complicated. Because cryptocurrency transfers between wallets are currently tax-free, cryptocurrency can be simply transferred during a divorce (assuming that the parties reach an agreement about how the cryptocurrency will be divided). In general, an “in-kind” analysis should be used to split the cryptocurrency the same way that certain courts divide equities at distribution. NFTs, on the other hand, cannot be divided since they are one-of-a-kind; only the revenues from the sale of the NFT can be distributed among the parties.
Social media influencers are frequently hired by marketing agencies and major consumer companies to promote their product or service on the influencer’s social media account, page, or channel. This marketing strategy earns cash for the marketer while providing a stable pay stream for the influencer. On a single sponsored Instagram post, some of the most well-known celebrities can earn up to $500,000. While goodwill and societal influence help an individual earn a living as a social media influencer, the cash gained from such activity is almost definitely related to a divorcing couple’s income-eligible for spousal or child support, and the income stream itself can be marital property.
To discuss how your digital assets and income stream will affect your divorce, call Kiswani Law for your consultation.