When it comes to divorce, one of the trickiest and most complex topics to navigate is the division of intangible assets. These are items like investments, cryptocurrency, NFTs, and business ownership — things that don't have a physical form but still hold value. Determining their worth can be difficult, and ensuring they're appropriately handled during the property division process is essential. In this blog, our asset division attorneys at Gille Kaye Law Group, PC break down intangible assets and explain how they're handled in a divorce.
Intangible Assets
Intangible assets, such as investments, cryptocurrency, NFTs, and business ownership, are approached differently in a divorce than traditional assets, such as homes, cars, and heirlooms. As intangible assets are typically unique assets that may hold high value, extra care should be taken as you enter your divorce, and it is essential that you retain a family law attorney that is experienced in handling complex assets.
Valuation of Assets
When it comes to intangible assets, one of the most important things to keep in mind is that their value can fluctuate rapidly. This is especially true for items like investments, cryptocurrency, and NFTs. As such, it's important to clearly understand their worth before beginning the asset division process. One way to do this is by hiring a professional appraiser who specializes in evaluating intangible assets. Consulting a third party to create a valuation of these assets can be helpful, especially as your intangible assets will need a court-approved valuation during the division of property process.
Another thing to keep in mind when dealing with intangible assets is that they may not be easy to divide. For example, you may own a business with your spouse. In this case, you'll need to determine whether one of you will keep the business, the business ownership will be split between the two of you, or if it will be sold. If you decide to sell the business, you'll also need to agree on how the proceeds will be divided.
Preparing Intangible Assets for Division
If you have intangible assets that are considered community property in your divorce, there are some steps you can take to prepare them. First, it's important to get a clear understanding of their value. As we mentioned above, hiring a professional appraiser is one way to do this. You should also gather any documentation related to the asset, such as ownership documents, tax returns, and appraisal reports. This can be helpful in the future as you have documentation regarding the asset's value, especially if your spouse contests that the asset’s value is over or underreported.
It's important to be prepared to negotiate over intangible assets and communicate with your attorney about which assets you wish to leave your marriage with. By sharing your desires for asset division with your attorney, they can prepare for the process and have the time to create a clear strategy for your asset division negotiations. If you and your spouse can't agree on how they should be divided, you may need to seek the help of a mediator or pursue arbitration if mediation fails.
Gille Kaye Law Group, PC Asset Division Attorneys
Dividing intangible assets in a divorce can be complex, but our asset division attorneys at Gille Kaye Law Group, PC are here to help. With a proven track record of helping families involved in complicated family law matters, we'll work with you so your intangible assets are valued properly and handled correctly in the property division process.
Intangible assets can be some of the most complex and difficult items to deal with during a divorce. Schedule a confidential consultation with one of our family law attorneys today by calling (626) 340-0955 or filling out our online contact form.