Protecting Digital Assets in California Divorces

Our Los Angeles family lawyer at WHITMARSH FAMILY LAW, PC, understands that protecting digital assets in California divorces has become increasingly important as more aspects of our lives move online.

Just like physical property, they must be carefully identified, valued, and divided in a divorce. Here’s how to get started.

Take a Digital Asset Inventory

During a divorce, couples must protect various digital assets that can have financial and sentimental value.

First, it’s crucial to make a comprehensive inventory of all digital accounts and assets. This inventory should include passwords, account details, and the estimated value of each asset, including:

• Online Financial Accounts: This includes online bank accounts, investment accounts, and digital wallets like PayPal, Venmo, or cryptocurrency accounts. These assets can be significant and require careful division.
• Cryptocurrency: Cryptocurrencies like Bitcoin, Ethereum, and others are increasingly common in divorce proceedings. Their value can fluctuate significantly, making them both a valuable and complex asset to divide.
• Digital Media Collections: Digital libraries of purchased music, movies, eBooks, and other media can have considerable monetary and sentimental value. These assets may need to be negotiated, especially if shared accounts are involved.
• Social Media Accounts: While not typically a financial asset, social media accounts like Facebook, Instagram, LinkedIn, and Twitter may hold significant personal and professional importance. Ownership and access may need to be clarified, especially for business-related accounts.
• Intellectual Property: This includes digital content such as blogs, websites, online businesses, trademarks, and patents. If one or both spouses have created or owned intellectual property, it must be valued and divided appropriately.
• Online Businesses: E-commerce stores, affiliate marketing websites, and other online business ventures are valuable assets that require proper valuation and division.
• Loyalty Programs and Points: Frequent flyer miles, hotel loyalty points, and other reward programs can have significant value and may be subject to division in a divorce.
• Cloud Storage: Photos, videos, and documents stored in cloud services like Google Drive, iCloud, or Dropbox can hold sentimental and sometimes financial value. Ownership and access to these accounts should be considered.
• Subscription Services: Accounts for streaming services, software subscriptions, or other ongoing digital services may need to be addressed, particularly if they are shared and tied to joint finances.
• Personal Data: This includes digital photos, videos, and other personal data stored on devices or in the cloud. Deciding how to handle these sentimental assets can be a sensitive issue.

Protecting and dividing these digital assets requires careful consideration and, in many cases, the assistance of legal professionals experienced in digital asset division during divorce.

Change Passwords to Secure Access to Your Digital Assets

Changing passwords and ensuring secure access to your accounts is essential to prevent unauthorized access or tampering by your soon-to-be-ex-spouse. Sometimes, it may be necessary to seek court orders to freeze or protect certain digital assets until they can be appropriately divided.

Evaluate All Shared Documents

It’s also important to update your estate planning documents, such as wills and trusts, to reflect any changes in ownership of digital assets following the divorce. Consulting with a family law attorney with experience in digital assets is advisable to navigate the complexities and ensure that your digital property is adequately protected and fairly divided during divorce. We can help.

Call (310) 552-3505 to schedule a free consultation with our skilled Los Angeles County family law attorney at WHITMARSH FAMILY LAW, PC.

We can help provide solutions that produce results.