Divorce already brings enough uncertainty. When cryptocurrency, online accounts, rewards points, and other digital property are involved, divorce proceedings can feel even more complicated. At Cohen Cleary, P.C., our family law attorneys & divorce lawyers help people work through these issues with clear, practical guidance. Massachusetts law allows courts to divide many kinds of property in a divorce, including modern assets that exist online rather than on paper. Questions about divorce in Massachusetts often involve both traditional property and newer forms of value.
What Are Digital Assets in a Divorce?
Digital assets are assets that exist in electronic form or are accessed online. While some have clear financial value, others may hold significant personal, practical, or sentimental importance and can become important considerations during a divorce.
Digital assets can include cryptocurrency, online payment accounts, airline miles, hotel points, online businesses, monetized social media accounts, domain names, digital artwork, stored value in apps, and accounts holding photos, documents, or business records. Some are easy to identify. Others are tucked away in apps, exchanges, cloud storage, or password-protected accounts. These may be assets that include reward points, business income, or digital currencies stored through online platforms.
Are Digital Assets Considered Marital Property in Massachusetts?
Often, yes. Massachusetts follows an equitable distribution system, not a strict 50/50 split. Under General Laws Chapter 208, Section 34, the court may divide the parties’ estate in a way the judge considers fair after looking at factors such as the length of the marriage, the conduct of the parties, their ages, health, occupations, income, employability, liabilities, needs, and opportunity to acquire future assets and income. Parties may also agree to a division of such assets.
That matters because a digital asset in a divorce may be treated much like money in a bank account or other marital property. If a cryptocurrency account, online business, or reward balance was built during the marriage, at least part of it may be considered marital property. Even property titled in one spouse’s name alone can still be considered by the court in dividing assets in Massachusetts.
Every case is different. A spouse may argue that they owned a certain digital asset before the marriage, that it was inherited, or that it should be treated differently than other marital assets for some reason. It might be such that one party does know how to manage digital assets, or simply does not want to. The starting point in Massachusetts, however, is not simply whose name is on the account. The bigger question is how and when the asset was acquired and what a fair result looks like under family law.
Common Types of Digital Assets in Massachusetts Divorces
Some digital assets show up more often than others in divorce cases. Cryptocurrency is one of the best-known examples. Bitcoin, Ethereum, and similar holdings may be kept on an exchange, in an app, or in a private wallet. These assets can rise or fall in value quickly, making them harder to manage than a regular savings account.
Online businesses are another common category. A spouse may run an e-commerce store, sell products through a marketplace account, earn advertising revenue from a website, or earn income from a social media account. Sometimes the real value lies in the income stream connected to it.
Other digital assets can include airline miles, hotel rewards, credit card points, digital artwork, valuable domain names, gaming accounts, or subscription-based platforms that generate recurring income. In some cases, spouses are dealing with cryptocurrency in divorce, along with other online holdings at the same time.
How Are Digital Assets Valued in a Massachusetts Divorce?
Valuing digital assets is often the hardest part. With a traditional checking account, the number is usually clear. With digital assets, value may fluctuate, depend on market conditions, or be tied to future income. Cryptocurrency is the clearest example. Its price can swing sharply over a short period, so the valuation date can make a real difference. A business-related digital asset may also require a deeper look at revenue, expenses, account history, and future earning potential.
In some cases, a divorce lawyer brings in financial professionals, business valuation experts, or forensic accountants to help trace transactions and place a fair value on the asset. Tax records, wallet histories, app records, and transaction logs may all be important.
The goal is to get a realistic picture of what exists, what it is worth, and whether it was created or increased in value during the marriage. That process may also involve reviewing crypto transactions, possible tax consequences, and capital gains issues tied to the sale or transfer of cryptocurrency. A skilled divorce attorney will want to account for those details before any final division is made. Valuation of some digital assets might require an expert.
What Happens When a Spouse Hides Digital Assets?
Some digital assets are easier to conceal than traditional assets because they may not arrive in a monthly paper statement and may be held behind passwords, private keys, or lesser-known platforms. Still, Massachusetts divorce cases require financial disclosure, and failing to disclose assets can damage a spouse’s credibility and position in court.
Our lawyers may use discovery tools to request information that helps uncover hidden assets. If one spouse suspects hidden crypto holdings or other digital property, there are often ways to trace transfers, identify reporting gaps, and compare claimed assets against tax filings, bank activity, and lifestyle evidence. Subpoenas may also be used to obtain information about digital assets from other entities.
How Are Digital Assets Divided Under Massachusetts Law?
Massachusetts does not require an equal split. The standard is what is fair under the circumstances. That means a judge may award one spouse a share of a digital asset, offset its value with other property, or structure the division in a practical way. Parties may also negotiate a settlement that is reasonable and agreeable to both parties.
The right approach depends on the type of asset, whether it can be transferred easily, its tax implications, and whether its value is stable or highly volatile. What matters most is ensuring the digital asset is identified, valued fairly, and accounted for in the broader property division.
Speak With a Massachusetts Divorce Attorney About Your Digital Assets
Digital assets can be easy to overlook and hard to value, but they can have a significant effect on a divorce’s outcome. Our Massachusetts divorce attorneys can help you identify what should be disclosed, evaluate whether an asset is part of the marital estate, and work toward a fair result that protects your financial future. If you have questions about digital property, speaking with our lawyers can help bring some clarity and peace of mind during a difficult time.
