Cryptocurrency accounts, NFTs and digital wallets can hold significant financial value. When you file for divorce in Kentucky, these assets can become part of the division of property. Whether a digital asset is divided depends on when and how it was acquired, not whose name is on the account.
Is a digital asset marital or separate property?
Kentucky law generally treats property acquired during the marriage as marital property, subject to certain exceptions. This can include digital assets such as Bitcoin, Ethereum or other cryptocurrency acquired during the marriage. Property owned before marriage or received as an inheritance may be treated as separate property under Kentucky law.
This distinction can affect how the court treats the asset in the divorce. Records showing when you acquired the asset can help establish its status. Transaction records, wallet activity and transfer logs may also help.
How is the value of a digital asset determined?
Digital assets can change sharply in value during a divorce. Kentucky courts generally value marital assets as of the date of the dissolution decree, although the valuation may depend on the type of asset and circumstances of the case.
Valuation can require transaction records, wallet statements and market data. You and your spouse may need clear records of current and past holdings. Without those records, finding the right value can be hard.
What if your spouse has not disclosed digital assets?
Digital wallets and cryptocurrency exchanges can be harder to trace than traditional bank accounts. If you suspect your spouse holds undisclosed digital assets, wallet addresses and transaction records may help show what exists.
Failing to disclose assets can lead to court action. It can also have other consequences in the divorce proceeding. Keeping records of known accounts can help address questions about ownership and value.
Protecting your interests in digital property
If you have digital assets or concerns about undisclosed holdings, gather wallet information and transaction records early. A Kentucky family law attorney can help you understand how those assets may affect property division.
