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As married couples’ personal finances have migrated onto digital platforms, courts are encountering new challenges in dividing property during divorce. What used to be straightforward review of physical assets is now complicated by the proliferation of online-only accounts, digital currencies and app-based investments. As such, hidden or overlooked digital assets have become an increasingly significant issue.

Digital assets encompass a wide range of property interests. They include online payment accounts like Venmo, PayPal and Cash App; investment accounts held on apps such as Robinhood or Acorns; and digital wallets, which might store balances from ride-share apps or retail platforms as well as loyalty points and rewards from airline or hotel programs. Other assets are cryptocurrencies, such as Bitcoin and Ethereum, and non-fungible tokens (NFTs), unique items stored and verified on a blockchain. 

In an Indiana divorce, all property acquired during the marriage counts as marital property that is subject to equitable distribution. Finding digital assets presents several complexities:

• Many lack paper statements or records, using only digital ledgers and app notifications. 

• Some apps are used solely on personal devices that the other spouse may never access.

• Cryptocurrencies and NFTs use decentralized and often anonymous transactions.

• Small balances can accumulate significant value across multiple platforms. 

Nondisclosure or concealment of accounts can result in an unequal distribution favoring the dishonest spouse. While some nondisclosures result from innocent oversight, many are intentional.

A spouse who suspects the other spouse is hiding digital assets should act proactively. They can gather app screenshots, digital statements and account information, and they should preserve any evidence of transfers or outflows. Deleting apps or closing accounts can harm a case. In complex cases, forensic accountants can be employed. Red flags — like unexplained withdrawals or lifestyle discrepancies — can help guide investigations. 

Engaging an experienced Indiana divorce attorney can be invaluable in uncovering potentially hidden digital wealth. Through discovery procedures such as interrogatories and requests for production, attorneys can acquire records and transaction histories. Subpoenas to banks and app-based platforms can reveal transfers to digital accounts. An attorney can also bring about accurate valuations of digital assets and make a compelling case for the share of the assets that you deserve.

The firm of Shilts & Setlak, LLC in Fort Wayne, Indiana provides the strategic advice that people need to protect their financial interests during divorce. Call us at 260-475-3106 or contact us online for a consultation.