Divorce discovery has traditionally focused on each spouse’s bank statements, tax returns, real estate records and retirement accounts. Today, however, a family’s financial life may extend far beyond those familiar documents. Cryptocurrency, online businesses, payment apps and other digital assets are increasingly important considerations when spouses identify and value property during divorce.
Cryptocurrency is one obvious example. Bitcoin and other digital currencies can have substantial value, yet identifying ownership may be more complicated than reviewing a traditional bank account. Discovery may involve cryptocurrency exchange records, transaction histories, digital wallets and records showing transfers between accounts.
Digital payment platforms can potentially provide valuable information, as well. Transactions through services such as PayPal or Venmo may reveal income, purchases or transfers relevant to one’s marital financial picture. Online banking and investment platforms can similarly contain records that may need to be disclosed and reviewed.
Other digital assets are easier to overlook. A spouse may own valuable domain names, monetized websites, online storefronts, digital artwork or intellectual property generating royalties. Social media accounts and content channels may themselves produce advertising or sponsorship income. These interests may require valuation just like more conventional business assets.
Electronic information can also assist with tracing assets. Emails, cloud-stored documents and electronic financial records may help establish when property was acquired, where money was transferred or whether an asset is marital or separate. In complex divorces, forensic accountants and digital forensic professionals may assist attorneys in examining this information.
Approaching this process with caution
There are important boundaries to digital discovery, however. Suspecting that a spouse is hiding digital assets does not authorize someone to guess passwords, secretly access protected accounts or install monitoring software. Improper attempts to obtain electronic evidence may inspire significant legal problems accordingly. Seeking experienced legal guidance can help a concerned spouse to manage the risk of these potential missteps as effectively as possible.
