The Dos and Don'ts of Digital Asset Management During Divorce

Divorce is a difficult and stressful process, especially when it comes to dealing with the finances and assets of both parties. One of the most complex aspects of this process is managing digital assets during divorce. In this blog post, we will discuss the dos and don'ts of digital asset management during a divorce, such as how to handle online financial accounts, digital documents, and other digital assets. With the right guidance, understanding digital assets and how to manage them during a divorce can be a much simpler process.

Do Make a List of All Your Accounts

When going through a divorce, it is important to make a list of all the digital assets and online financial accounts that you own. This list should include things like: bank accounts, investment accounts, digital currencies, credit cards, online payment services, and any other online accounts that contain personal data or money. Knowing what digital assets you have is the first step in ensuring your financial security during the divorce process.

When making your list, you should try to be as thorough as possible. Include all accounts that may have had a financial impact on you during your marriage, even if you no longer use them. It’s also important to include any joint accounts that you had with your ex-spouse.

Do Gather Documentation

When managing digital assets during divorce, it is important to gather as much documentation as possible. This includes records related to investments, bank accounts, retirement accounts, and other financial accounts. Make sure to obtain copies of statements, account balances, investments, and any other pertinent documents. You should also make sure to get a copy of your credit report so you know what kind of debt is held in your name and that of your spouse. You may also want to make copies of any legal documents such as prenuptial or postnuptial agreements. All of this information will help you understand the financial situation between you and your spouse and help protect your interests in the divorce proceedings. Furthermore, you may need to provide this information to lawyers or other third-parties in order to demonstrate your financial standing during the process.

Don't Hide Money

When it comes to managing digital assets during a divorce, one of the most important things to keep in mind is not to hide money. This can be a very difficult decision if you feel that you have a legitimate reason to do so. Unfortunately, hiding money can lead to serious legal consequences, so it's important to consult with a divorce lawyer before taking any steps to conceal funds or property.

In some cases, spouses may be tempted to hide money by transferring it into another account or by withdrawing cash from existing accounts and keeping it in a safe place. These actions can be very difficult to prove, especially if the spouse who is hiding the money does their best to cover their tracks. Additionally, hiding money often violates state laws or court orders, which can result in serious penalties, including financial sanctions or even criminal charges.

Don't Create Fake Accounts

Creating fake accounts or using someone else's accounts in an effort to hide assets or income is illegal. According to Florida Divorce Attorney Robert Sparks, "Concealing assets during divorce can result in serious consequences, such as being found in civil contempt of court. Lying about hidden assets can result in perjury charges." Therefore, it is important to make sure that all accounts associated with you and your spouse are listed and accounted for when filing for divorce.