Divorce can be challenging, but the division of assets can become one of the most complex aspects. Understanding how courts divide digital assets in Ohio divorce settlements is critical for divorcees who own property, such as cryptocurrency.
Understanding digital assets and cryptocurrencies
Digital assets include cryptocurrencies and online investment accounts. Cryptocurrencies are virtual or digital funds that use cryptography for security. Their value can fluctuate significantly, complicating their division in a divorce settlement.
Classification of assets in Ohio divorces
The state of Ohio categorizes assets into two main types: marital assets and separate assets. Property acquired during the marriage is a marital asset, while property owned before the marriage or acquired individually is a separate asset.
Courts classify digital assets like cryptocurrencies in a similar way. If an individual acquired them during the marriage, they’re a marital asset, subject to division in a divorce. The court typically treats assets acquired before marriage or individually as separate assets.
Valuing digital assets and cryptocurrencies
Before any divorce settlement, a valuation of digital assets and cryptocurrencies must occur. This involves determining the current market value and considering the potential future value of the investment. Cryptocurrency values can change daily, so the value at the time of division requires careful assessment. For other digital assets, valuation can include assessing the current market worth or potential income generation.
Dividing digital assets in divorce settlements
After determining the value of a digital asset, the court will seek to divide it equitably between divorcees. Courts base fair distribution on numerous factors, including:
- The length of the marriage
- Each spouse’s financial situation
- Contributions to the marital estate
- Prenuptial agreements
After weighing these factors, the assets will go to each party as the court decides.
Achieving a fair settlement
Understanding how the court classifies digital assets and cryptocurrencies can help individuals work toward a fair settlement. Knowing whether the asset was acquired before or during the marriage will make it easier to navigate the complexities of asset division.
