Dividing Digital Assets in Divorce – 50-50 Split?
Fifteen to twenty years ago, digital assets were not a topic of hot debate or even of casual conversation. Fast forward to modern day America and all of that has since changed. As a society, we have experienced a cultural shift that now encourages an increasing trend to move large portions of our lives online. For better or worse, online accounts, social media, and digital currency are here to stay. Seeking the advice of current and knowledgeable family law attorneys will help you navigate the challenges that all divorcing parties face when it comes time to divide their assets, digital or otherwise.
What are Digital Assets?
The term ‘digital assets’ is generally described as anything of value that can be stored or accessed online. More specifically, these include intangible assets that exist in a digital format covering a wide swath of categories.
First and widely recognized are online or “crypto” currencies. Examples such as Bitcoin, Ripple, Dogecoin, and more have entered popular jargon as increasing numbers of people accumulate and trade their funds online. Additionally, online reward programs draw high interest from vast numbers of Americans every day. Digital plans such as online cash-back reward systems and air miles accounts all accumulate value no differently than tangible items in one’s possession. For that reason, these programs and plans must be accounted for when property is being divided in a divorce.
Furthermore, you might not think of online movies, books, music, and their subsequent accounts as divisible property, but in all actuality, they are! In our society, we often pursue online entertainment and what naturally follows are Netflix accounts, downloaded movies, and digital books. Likely these digital assets are going to be counted as marital property subject to an equitable division in Ohio, assuming both spouses had access to and played a part in growing the collection.
Moreover, digital photographs and videos shared on sites such as Facebook or YouTube are no different. All of these online assets must be divided among the parties, but unlike other personal property, pictures and videos are likely to cause less stress throughout the separation process because most couples simply provide copies to one another.
Ebay and Etsy Examples Of Divisible Digital Assets
Finally, many people today start and operate their own businesses online. Whether it’s just a side gig to make some extra cash or a full-fledged, large-scale online company, value is accumulated all the same. Small e-commerce stores available on Ebay, personalized shops on Etsy, and even highly accredited and profitable podcasts all provide good examples of a divisible digital asset.
How Do My Digital Assets Impact My Divorce?
Although they are intangible, digital assets are most frequently categorized as martial property, thereby making them subject to the same valuation and division process as other tangible assets in a divorce proceeding. While all states recognize the differentiation of marital and separate property, each state individually differs in its laws of property division. In Ohio, the law recognizes a desire for people to undergo an equitable distribution of their shared marital property. In other words, a court will not automatically award a 50-50 split of everything owned, but rather it will seek a fair distribution of the property while taking into account several factors including things like the contributions of each party and the overall financial circumstances of the parties.
In most cases, attempting to divide digital assets is less emotional than tangible items that someone has grown fond of during their marriage. As mentioned above, some assets may easily be able to be copied and shared, while other items like sky-mile points prove to be a bit trickier. Either way, each asset still must be considered as part of the whole and then divided justly through processes of negotiation, mediation, or a contested trial at the courthouse.
What To Do If I am Unsure About My Own Digital Assets?
Digital assets and the new challenges they present can be difficult to parse through on your own. When you are discussing your assets with your divorce lawyer, DON’T FORGET TO MENTION YOUR DIGITAL ASSETS!
Our Trusted and Experienced Divorce Lawyers Are Ready To Assist You
Our experienced Dayton divorce lawyers at Holzfaster, Cecil, McKnight & Mues can assist you with your divorce or dissolution related issues. To learn more, please go to our website at www.hcmmlaw.com or call us at 937 293-2141. We can schedule an in-person conference or one by phone or Zoom. We look forward to helping you!
PUBLISHER’S NOTE:
I want to thank Alyssa Acevedo for her assistance in drafting this article. Alyssa is externing with our firm this semester. She has just started her third and final year of law school at the University of Dayton School of Law. You did a GREAT job with this article!
© 2021, Ohio Family Law Blog. All rights reserved.
Attorney Robert “Chip” Mues has been focusing his legal practice throughout Southwest Ohio primarily in divorce and family law matters since 1978. Chip is passionate about family law and has proudly published the Ohio Family Law Blog since 2007. In addition, he is the managing partner of Holzfaster, Cecil, McKnight & Mues. To learn more about him or the law firm, visit the firm’s website at www.hcmmlaw.com. Appointments are available in person, over the phone or by Zoom. Call us at 937 293-2141.
