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Dividing Digital Assets Post Divorce? Here’s What Milwaukee Divorce Lawyers Want You to Know

The digital age has brought very unique and previously unseen challenges. For instance, asset division used to be quite the complicated process in case of a divorce. However, it was possible to arrange for buyouts, 50/50 splits, or other financial options. This becomes extremely difficult in the case of digital assets. 

Firstly, digital assets themselves are quite varied. A couple might have jointly purchased a digital media like an eBook, movie, or video game. It is up to the lawyers to identify how this can be amicably divided. Secondly, the valuation of digital assets is quite challenging to ascertain. While an amount can be identified for digital media, other assets like cryptocurrency are extremely volatile! 

The challenge with digital asset division is fair distribution. As such, it’s essential to understand the legal methodologies and strategies to deal with this. The experts at Karp & Iancu, S.C. have had significant expertise in this area. Here’s how they’ve approached the issue of digital assets.

Valuation of Digital Assets

The first step in dividing digital assets is determining their value. Digital assets can include cryptocurrencies, online investment accounts, intellectual property, and even social media accounts. Each of these assets requires a different approach for accurate valuation.

Expert lawyers work with financial experts to appraise digital assets accurately. For cryptocurrencies, this might involve tracking historical prices and market trends. For intellectual property, lawyers might consult with valuation experts who specialize in intangible assets. 

Ownership and Control

Determining the ownership and control of digital assets can be tricky, especially when accounts are shared or assets are purchased using joint funds. Clear documentation and understanding of each asset’s history are essential.

Lawyers investigate account histories, purchase records, and digital trails to establish who owns and controls each asset. They ensure that both parties have access to relevant information and that ownership claims are substantiated with concrete evidence.

Cybersecurity and Privacy

A unique challenge of the digital world is potential information leaks. Divorce proceedings often involve sensitive personal and financial information. Protecting this data from cyber threats and maintaining privacy is crucial.

An expert lawyer focuses heavily on cybersecurity measures to protect their clients’ information. This includes using secure communication channels, encrypting sensitive data, and advising clients on safeguarding their digital accounts. 

Hiding Assets

A unique challenge in divorce cases is the potential for one spouse to hide assets. Digital assets, due to their intangible nature, can be particularly susceptible to concealment. This might involve copying the asset into other drives, or restricting the password that allows access to the asset. 

Forensic accounting techniques are required to uncover hidden digital assets. This involves analyzing financial statements, tracking digital transactions, and employing digital forensic experts to investigate suspicious activities. If all else fails, lawyers can always opt for negotiation and mediation. 

Legal and Regulatory Compliance

Digital assets are subject to various legal and regulatory frameworks, which can vary depending on the type of asset and jurisdiction. In fact, with the ever-changing nature of certain assets, simply identifying what laws apply might be a challenge. Never-the-less, ensuring compliance with these regulations is essential to avoid legal complications.

Divorce lawyers are always aware of the latest legal developments and regulatory requirements concerning digital assets. They provide guidance on compliance issues, helping clients navigate the complex legal landscape. This includes understanding tax implications and adhering to reporting requirements.

As we progress towards an increasingly digital world, the issue of digital assets is going to get trickier and hazier. In such a case, it’s best to work with attorneys with prior experience in this area. Not only do they have a set strategy to be relied upon, but they can also develop new approaches to deal with unique concerns! 

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