Dividing Digital and Cryptocurrency Assets in Divorce Settlements
Feb. 24, 2026
In today's world, a large portion of daily life revolves around the internet and digital platforms. As our technology evolves, financial portfolios have expanded to include assets, such as digital accounts and cryptocurrency, that weren’t part of traditional divorce settlements years ago. These assets can often provide significant benefits for married couples. But how are these assets divided in the event of a divorce?
At Iwanyshyn & Associates, located in Allison Park, Pennsylvania, we understand that dividing digital assets can be challenging. Our attorneys are dedicated to helping you understand the nature of your assets and pursue a fair and equitable division during your divorce proceedings. Contact us today to schedule a consultation.
Types of Digital and Cryptocurrency Assets
Digital and cryptocurrency assets include a broad range of virtual accounts and holdings that can have substantial financial value. These assets are challenging to identify and evaluate, especially since many people don't realize cryptocurrency is treated as property in a divorce. Some common types of digital and cryptocurrency assets that may be subject to division during a divorce include:
Cryptocurrency accounts: This includes investments in Bitcoin, Ethereum, Litecoin, Dogecoin, and other digital currencies. Cryptocurrency operates on a decentralized network, making it harder to trace than traditional bank accounts, and its value can fluctuate significantly, making it challenging to obtain an accurate valuation.
Crypto wallets and blockchain accounts: Many investors store their cryptocurrency in crypto wallets—either online (digital wallets) or offline (hardware wallets). Access to these wallets may be password-protected, which can make it difficult to identify the funds.
Non-fungible tokens (NFTs): NFTs have surged in popularity, and investments in digital artwork, collectibles, and other unique virtual tokens can hold significant monetary and sentimental value. NFTs, like cryptocurrency, are stored on blockchain networks and require careful valuation.
Online business ventures: Digital assets may include profits from e-commerce stores, online affiliate marketing, or other virtual businesses. Each income-generating platform must be considered during the divorce process.
Virtual real estate or digital items: Some individuals own virtual property or assets in online games or virtual worlds, such as Metaverse platforms. These holdings can have real-world monetary value and will typically be addressed during asset division.
Stock portfolios held on digital platforms: Investments made through online platforms, such as stocks, bonds, and other securities, are common in many digital portfolios. Identifying and valuing these assets is critical to an equitable division.
The division of these assets often depends on several factors, including the jurisdiction, the nature of the assets, and how they were acquired. If you hold digital assets and are facing a divorce, speak with an experienced attorney who can help you properly evaluate your assets and pursue a fair division.
How Are Digital and Cryptocurrency Assets Treated in a Divorce?
Digital and cryptocurrency assets are generally treated as property. Under Pennsylvania's “equitable distribution” standard, marital property is fairly, not necessarily equally, during a divorce. Marital property typically includes any assets acquired during the marriage, including digital and cryptocurrency holdings.
For example, if one spouse purchased Bitcoin during the marriage or invested in NFTs, those assets may be subject to division as marital property under Pennsylvania law. However, depending on the circumstances, assets acquired before the marriage, after the separation date, or as individual gifts may be considered separate property.
In short, digital assets are typically divided in a manner similar to physical assets in a divorce. When determining division, the courts will consider specific factors, including each spouse’s contributions to the marital estate, the length of the marriage, and the financial circumstances of both parties.
Challenges to Dividing Digital and Cryptocurrency Assets
The nature of digital and cryptocurrency assets creates unique challenges during a divorce. Unlike traditional assets, these holdings often exist in decentralized or anonymous systems, making them more challenging to identify and quantify. Your spouse may attempt to hide these assets, particularly if proper documentation and records have not been maintained.
Cryptocurrencies and NFTs are highly volatile, making valuation extremely difficult. The value of most cryptocurrencies can change dramatically within days or even hours of assessment. This volatility often requires the assistance of financial professionals who specialize in cryptocurrency to achieve an accurate and fair distribution.
Cryptocurrency transactions may also have significant tax implications, and failing to properly account for these during asset division could leave one party with significant unexpected liabilities. Working with attorneys and accountants with experience in digital assets is critical to minimizing such risks.
Steps to Promote a Fair Division of Digital Assets
Digital and cryptocurrency assets naturally pose challenges when dividing assets during a divorce. However, there are steps you can take to promote a fair settlement. The simple steps both you and your spouse should take include the following:
Work with professionals: Cryptocurrency is a highly complicated area of asset division. Therefore, it's important to work with an experienced attorney, forensic accountants, and other professionals to fully disclose your assets and advocate for your financial future.
Fully disclose all assets: Both parties are legally required to disclose all their assets during a divorce. This includes digital and cryptocurrency holdings. If one party suspects the other of hiding assets, legal measures can be taken to trace and uncover missing digital assets.
Valuate all assets: Accurate valuation is critical for the equitable division of digital and cryptocurrency assets. Given the rapid fluctuations in value within volatile markets, this process may require collaboration with a financial or cryptocurrency expert.
Provide secure documentation: Cryptocurrency transactions and wallet information must be well-documented during a divorce. Evidence such as keys to crypto wallets, transaction histories, and exchange account information should be provided to your attorney for proper review.
Engage in negotiation and division: Once your assets are disclosed and valued, you can proceed with division. Depending on the situation, digital and cryptocurrency assets can be divided between you and your spouse or offset with other marital assets to reach an equitable agreement.
Contact Our Experienced Pennsylvania Family Law Attorneys Today
At Iwanyshyn & Associates, we understand the challenges of addressing digital and cryptocurrency assets during a divorce. Our attorneys are well-versed in handling these cases and are dedicated to helping you achieve a fair division of assets.
With offices in Allison Park and Conway, Pennsylvania, we serve clients throughout the surrounding areas, including Butler County, Pittsburgh, Wexford, Beaver, Gibsonia, and the counties of Allegheny, Beaver, Washington, Fayette, Westmoreland, & Armstrong.
If you’re going through a divorce and have questions about the division of digital and cryptocurrency assets, contact us today to schedule a consultation.