As technology evolves, so do the complexities of divorce and asset division. Digital assets like cryptocurrency, NFTs, and online business income are becoming more common. A family law attorney Phoenix can help navigate these new assets under Arizona’s community property laws.

Understanding Arizona’s Community Property Laws

Arizona is a community property state, meaning assets acquired during marriage are generally considered jointly owned. This includes physical property and digital assets. Both spouses are typically entitled to an equal share of the marital property, no matter whose name is on the title.

Community property laws divide assets straightforwardly in many cases. However, digital assets like cryptocurrencies and NFTs add a layer of complexity. They often don’t have a physical presence, making them more challenging to value and divide.

The increasing prevalence of digital assets means courts must now address how these fit into traditional asset division. A family law attorney can offer guidance on handling these emerging property types in the divorce process.

The Growing Influence Of Cryptocurrencies

Cryptocurrencies like Bitcoin and Ethereum have grown substantially in popularity in recent years. These digital currencies are bought, sold, and stored on decentralized platforms. Because of their nature, they often raise questions about their ownership and value during divorce proceedings.

In Arizona, if cryptocurrency was acquired during the marriage, it’s considered community property. This means both spouses are entitled to an equal share, regardless of who made the original investment or holds the private keys. Cryptocurrency can be stored in digital wallets, making tracking harder than traditional bank accounts.

The challenge often lies in finding and valuing cryptocurrency. Unlike stocks or bonds, cryptocurrencies can fluctuate wildly in value, adding another layer of complexity to asset division. A family law attorney will likely work with financial experts specializing in digital assets to ensure fair distribution.

Valuing NFTs And Other Digital Assets

Non-fungible tokens (NFTs) are unique digital assets that have gained significant attention recently. NFTs represent ownership of digital items such as artwork, videos, music, and virtual real estate. Since NFTs are usually bought with cryptocurrency, they also fall under community property laws in Arizona if acquired during the marriage.

Valuing NFTs can be difficult because their worth is subjective and can vary widely based on market trends. Unlike traditional assets like real estate or retirement accounts, NFTs have no established valuation methods. A family law attorney will often seek the help of an appraiser or an expert in digital assets to develop an accurate value for division purposes.

In many cases, the court will consider the market value of an NFT at the time of divorce. However, since the value of digital assets can fluctuate, an assessment of how the asset has appreciated or depreciated over time may also be required.

Modifying The Divorce Agreement For Digital Assets

After the divorce is finalized, either spouse may request modifications to the agreement if new digital assets are discovered or the value of existing assets changes. This is particularly common with volatile assets like cryptocurrency, which can fluctuate in value long after the divorce.

If one spouse acquires significant digital assets after the divorce, they may need to revisit the original agreement. A family law attorney Phoenix can assist in filing a post-decree modification request to adjust asset division. These modifications help ensure that both parties receive a fair share, even after the divorce is finalized.

Conclusion

As digital assets are popular, they are increasingly important in divorce proceedings. Arizona’s community property laws apply to these assets just as they do to more traditional property, but valuing and dividing them can be complex. A family law attorney Phoenix can provide expert guidance on navigating the challenges of dividing digital assets and ensuring a fair outcome for both parties.