Protecting your digital assets during a divorce in Texas requires careful planning and legal strategies to ensure these valuable assets are accounted for and properly managed. Examples of digital assets you may want to protect are your photos, social media profiles, cryptocurrency, and other items stored digitally that may have some value. Below are some helpful tips to make sure these assets are protected:
1. Identify and Inventory Your Digital Assets
Start by making a detailed list of all digital assets you want to protect in your divorce, including:
- Financial assets: Cryptocurrency, NFTs, online payment accounts (PayPal, Venmo).
- Business-related assets: Websites, domain names, email lists, online storefronts, social media accounts.
- Personal assets: Cloud storage, photo or video collections, eBooks, music libraries.
- Online subscriptions: Streaming services, software licenses, memberships.
- Other digital property: Gaming accounts, virtual real estate, intellectual property.
2. Assess Ownership and Classification
In Texas, digital assets acquired during the marriage are generally community property unless proven to be separate property. Work with your attorney to classify digital assets as either:
- Separate property: Owned before the marriage or inherited.
- Community property: Acquired or significantly contributed to during the marriage.
3. Secure and Backup Important Data
- Change passwords: This is for any personal accounts to prevent unauthorized access by your spouse. If it is jointly-owned or previously accessible to both you and your spouse, be aware that locking your spouse out of the account may not be seen fsvorably by a court.
- Enable two-factor authentication: Add a layer of security to sensitive accounts.
- Backup data: Create copies of critical digital assets stored in the cloud or on physical drives.
4. Avoid Unauthorized Changes
Texas courts frown upon deliberate attempts to hide or alter assets during a divorce. Some courts even have standing orders that you cannot make any unauthorized changes to your digital assets and accounts. Therefore, it is best to ensure you do not:
- Delete data
- Lock your spouse out of shared accounts
- Move assets from one account to another
Instead, document the current state of all digital assets and consult your attorney before making changes.
5. Negotiate Ownership of Digital Assets
Work with your attorney to determine how digital assets should be divided or assigned. For example:
- A spouse who uses the business’s website for work may retain ownership.
- The value of cryptocurrencies or NFTs can be split as part of the marital estate.
6. Address Social Media and Online Accounts
- Shared accounts: Decide who will control joint accounts like shared social media pages or business profiles.
- Reputation management: Protect against harmful posts or disclosures during the divorce process.
- Personal privacy: Review account settings to safeguard sensitive information.
7. Use Experts for Valuation
Certain digital assets, such as cryptocurrencies, NFTs, or websites, may require professional valuation. A forensic accountant or valuation expert can assess their fair market value.
8. Update Legal Documents Post-Divorce
After the divorce is finalized:
- Update your will and estate plan to reflect changes in ownership of digital assets.
- Ensure your digital estate plan includes details on access to your accounts in case of incapacity or death.
9. Protect Business-Related Digital Assets
If your digital assets are tied to a business, consider:
- Adding clauses to your divorce settlement to ensure sole control of business-related accounts.
- Using nondisclosure agreements to protect sensitive business information.
10. Consult a Divorce Attorney
Work with an experienced family law attorney in Texas to ensure digital assets are accounted for, valued, and fairly divided. They can also advise you on Texas-specific laws and court practices. By taking proactive steps and working with the right professionals, you can protect your digital assets while navigating the complexities of a divorce.