Over the past few years, cryptocurrency has become much more prevalent. However, due to their complex nature, many are unfamiliar with how these work, which can prove detrimental for those undergoing a divorce. Unfortunately, if you’re not tech-savvy, you may not realize that your partner’s NFTs may be carefully hidden assets. Keep reading to familiarize yourself with these digital tokens and discover how a Los Angeles division of assets attorney can help you navigate the complexities of this new asset.
What Are NFTs?
Non-fungible tokens (NFTs) are often very confusing for many. Generally, when something is non-fungible, it is entirely unique, and there is nothing of equal value. Take a dollar bill, for example. You can easily trade $1 for another, as they have the same qualities that make them the same value. However, the Mona Lisa is non-fungible because it is deemed invaluable by industry experts.
Generally, NFTs refer to a digital work of art. Someone will purchase something non-fungible, often represented by a drawing or other digital rendering. It’s important to understand that when you buy an NFT, you are not paying for the artwork itself but rather the space it takes up on the blockchain where it is stored. You essentially pay for a certificate proving you own the NFT.
How Can NFTs Hide Assets?
If you and your spouse are going through a divorce, it’s essential to understand that these can drastically appreciate in value, meaning they can house hundreds of thousands of dollars in hidden value. As such, it’s vital to learn whether or not your spouse has an NFT collection and whether or not they are deemed marital property.
Many spouses use NFTs to their advantage due to their relatively new and often unclear nature. For example, it’s easier to hide assets because they have anonymity on the blockchain which can help conceal the owner’s identity. Similarly, your spouse may claim they didn’t know they must disclose their NFTs if they are caught.
How Can a Divorce Attorney Help Me?
Whether you found cryptocurrency on your spouse’s phone or they continually make substantial withdrawals, it’s critical to understand these are red flags that warrant further investigation.
It’s vital to enlist the assistance of an experienced attorney when you believe your spouse is hiding NFTs. If the NFTs were purchased with money from a joint account, they can be deemed marital property, meaning you are entitled to them. However, trying to do this on your own can often result in confusion, and you may end up with nothing.
At the Zitser Family Law Group, our dedicated legal team will do everything possible to help guide you through this process. We understand how complicated NFTs can be. As such, we will do everything possible to help ensure you get the assets and funds you deserve when going through a divorce. Contact us today to learn more about how we can assist you.
