Types of Digital Assets in California Divorces
Digital assets are becoming quite important in modern California divorces. While virtually no marital estate contained these assets a few decades ago, they now form at least a portion of countless investment portfolios. According to various studies, roughly one in five Americans own digital assets. In other words, there is about a 40% chance that each divorce will contain at least one spouse with digital assets in their possession. This chance may be even higher in California compared to the national average, as the Golden State has long been a leader in technological innovation. To ensure that digital assets are properly accounted for and divided, consulting a divorce attorney in San Bernardino can provide valuable guidance. What types of digital assets should you be aware of as you approach divorce in California? Additionally, working with a Riverside divorce law firm can help you navigate the complexities of digital asset division and ensure a fair outcome.
Cryptocurrencies
Also known as “crypto” or “crypto tokens,” cryptocurrencies are perhaps the best-known digital assets in the world today. The two mainstream tokens are Bitcoin (BTC) and Ethereum (ETH). Each of these options has its own publicly traded ETFs, marking their transition into traditional finance or “tradfi.”
However, there are many other crypto tokens to consider. Other well-known tokens include Solana and Cardano. There are also countless “altcoins” that are far more volatile and unpredictable than their more mainstream counterparts. Further down the chain, you can find “meme coins” of extremely questionable value and even higher volatility.
Regardless of whether your marital estate holds Bitcoin or an extremely obscure meme coin, it is worth assessing the value of these assets. Meme coins may seem like jokes, but they can rise in value to an almost unbelievable degree. For example, a token with a picture of a dog rose by 4,000% in just four months.
Aside from assessing the value of these tokens, crypto can also be difficult to locate. Some users hold them on exchanges, while others favor anonymous digital wallets.
Stablecoins
Another popular type of digital asset is a stablecoin. Major stablecoins include Tether and USDC. These coins are pegged to the US dollar, making them inherently less volatile and more predictable. They are also popular for transfers and payments – especially among those who are engaged in financial misconduct. This could certainly include spouses who attempt to conceal marital funds from their exes. A Riverside divorce attorney can help uncover hidden assets and ensure they are considered during the divorce proceedings. Stablecoins are also capable of earning “yields” when users “stake” them.
NFTs
NFTs or “non-fungible tokens” are also quite popular, although they have fallen out of favor somewhat since their sudden rise in popularity. According to one report, nearly all NFTs on the market today are effectively worthless – so it may not be worth spending funds locating and assessing these assets in the event of a divorce. The cost of forensic accounting and tracing could be a complete waste in this regard.
Find an Experienced Divorce Lawyer in California
If you have been searching for an experienced divorce lawyer in California, look no further than the divorce law firm RM Law Group. Over the years, we have helped numerous spouses – including those with complex assets. Whether you hold digital assets or you are struggling to track down crypto held by your ex, we can help. Book a consultation today by calling us at 866-706-3160 to learn more about the property division process in Riverside County.
Jason Martinez is a co-founding partner of RM Law Group, LLP. His practice focuses exclusively on California Family Law and community property division, including litigation and settlement of complex and high-conflict divorce and child custody proceedings. Jason understands that divorce and family law issues have long-term effects on all family members, especially the children.
