San Jose Special Financial Considerations Attorney
Dividing Points, Miles And Cryptocurrencies
For most people, “property division” in divorce includes the house, vehicles, financial accounts and tangible possessions. Those are the most common possessions shared by married couples. However, it is important not to lose sight of other assets, including those that have gained prominence in the tech age.
Our San Jose special financial consideration attorneys at Foster Hsu, LLP, finds that couples often overlook assets such as:
- Cryptocurrencies, such as bitcoin and Litecoin
- Airline points and frequent flyer miles
- Hotel rewards points
- Credit card rewards
- Digital music libraries
- Website domain names
- Family pictures stored on cloud accounts
Property Division in California is Complicated
California may be unique among the states when it comes to dividing marital property in a divorce. Only nine states are community property states like California, while the rest follow the principle of “equitable distribution.” Even among the minority of community property states, California law has many unique features that can make the division of property particularly complex and challenging in many respects.
That being said, in any state, in order to divide marital property, an individual needs to take a close look when certain digital or virtual assets are involved. Some of these items will have a monetary value that can be fairly easily quantified and divided. Some digital assets, such as e-commerce websites or social media accounts that generate ad revenue, may produce ongoing streams of revenue. In these cases, it may be necessary to identify who created the account and determine whether revenue is generated by the nature of the account or due to the contributions of one of the spouses. It’s also important not to overlook online gaming accounts, which sometimes accumulate thousands of dollars of value in virtual assets and goods which can be exchanged in virtual marketplaces.
Dividing cryptocurrencies can be difficult. The value can change from one day to the next, so a list of assets that gives one amount may not match the currency’s true value on the date your divorce decree is finalized.
You should talk with a knowledgeable attorney if you or your spouse has cryptocurrency. Foster Hsu, LLP, can help you understand what steps to take when dividing these types of assets.
What Happens to Reward Points and Frequent Flyer Miles?
Some couples accumulate a significant amount of credit card points or other rewards, which can be valuable. While there can be some debate about who earned the points, miles or other rewards, in general, if they were earned during the marriage, the Court will divide them between both spouses.
We Understand Your Interests
Nontraditional assets can make divorce more complicated. It is important to have an advocate on your side when deciding how to divide shared assets. Call our office at 408-841-7200 or contact us online to make an appointment.