Digital Assets In Maryland Divorce Cases

As technology continues to evolve, we must consider how assets like cryptocurrency, online accounts, and intellectual property are handled in the divorce process. Maryland law provides clear guidelines on property division, but digital assets can raise unique challenges. In many cases, these assets are not physical in nature, and the question of ownership, valuation, and division can become complex. For those of us handling divorce cases, it’s essential to understand how digital assets are identified, classified, and distributed under Maryland law.

In Maryland, property acquired during the marriage is considered marital property, and it is subject to equitable distribution. However, equitable does not mean equal; it means fair based on several factors outlined in the Maryland Family Law Code (§ 8-205). The increasing use of digital assets adds another layer to the financial landscape of a marriage. We must first determine whether these digital assets are considered marital or non-marital property. Assets acquired before the marriage or after separation, for example, may be classified as non-marital. This classification is key because it affects how the assets will be distributed between the spouses.

Cryptocurrency And Its Valuation In Divorce

One of the most common digital assets we deal with today is cryptocurrency, such as Bitcoin or Ethereum. Valuing these types of assets can be difficult because they are subject to market fluctuations. We work with financial experts who help assess the value of these assets at the time of divorce, and Maryland law requires us to disclose all relevant financial information. Transparency is essential in divorce cases, and hiding or undervaluing digital assets can lead to penalties under Maryland’s equitable distribution rules. Under § 8-201, Maryland courts can address misconduct when a spouse attempts to hide assets.

Intellectual Property In Divorce

Another key consideration is intellectual property, which may include copyrights, patents, and trademarks. Intellectual property is a unique type of asset that can continue to generate income long after it is created. In Maryland divorce law, the income generated from intellectual property developed during the marriage is often considered marital property. Dividing these assets fairly requires careful attention to the value they generate both now and in the future. We often work closely with appraisers and legal experts to ensure that intellectual property is properly valued and divided.

Digital Accounts And Online Businesses

Additionally, digital accounts such as online banking, social media, and even cloud storage can have significant value. For example, online businesses that generate revenue might fall under the category of marital property. The ownership and control of these accounts need to be clearly defined in divorce proceedings. Maryland’s courts have wide discretion in determining how these types of assets are divided, taking into consideration the contributions of each spouse to the development and management of these accounts.

Challenges In Evolving Digital Asset Laws

The legal landscape surrounding digital assets is still evolving, and new types of assets are constantly emerging. As experienced attorneys, we keep ourselves updated with changes in the law and best practices to ensure that our client’s rights are protected. Whether a couple has cryptocurrency, online businesses, or intellectual property, our firm takes the necessary steps to ensure that all assets are properly identified, valued, and fairly divided.

Digital Asset FAQs

What Are Digital Assets In A Divorce Case?

Digital assets include any property or resource that exists in electronic form, such as cryptocurrency, online businesses, intellectual property, or even social media accounts. In a Maryland divorce, digital assets can be classified as marital or non-marital property, depending on when and how they were acquired. Marital property is subject to equitable distribution, while non-marital property is usually retained by the spouse who originally owned it. Determining the status of digital assets is crucial for a fair division in divorce proceedings.

Can Intellectual Property Be Divided In A Maryland Divorce?

Yes, intellectual property, such as patents, trademarks, and copyrights, can be considered marital property if it was created or acquired during the marriage. Maryland law allows for the division of income generated by intellectual property in a way that is fair to both spouses. Because intellectual property often continues to generate revenue after the divorce, it’s important to work with professionals to determine its current and future value. Courts will take these factors into account to ensure an equitable distribution.

What Happens To Online Business Accounts In A Divorce?

Online businesses, including e-commerce platforms and social media accounts that generate revenue, are considered assets in a Maryland divorce. If the business was started during the marriage, it may be classified as marital property, subject to equitable division. The value of the business, its earnings potential, and the contributions of each spouse will all be considered when determining how these assets are divided. We work to ensure that all aspects of an online business are properly assessed and that ownership is clearly defined.

What If One Spouse Hides Digital Assets During The Divorce?

Hiding assets in a Maryland divorce is against the law and can lead to serious consequences. Under Maryland Family Law (§ 8-205), the court can impose penalties for misconduct, including the intentional hiding of assets. If a spouse suspects that the other is hiding digital assets, we can request financial disclosures and work with experts to uncover any undisclosed property. Maryland’s courts emphasize fairness and transparency, and failing to disclose assets can significantly affect the outcome of a divorce settlement.

Contact Our Divorce Attorney In Rockville For Dedicated Representation

At The Law Office of Sandra Guzman-Salvado, we understand the unique challenges digital assets present in a divorce. Whether it’s cryptocurrency, intellectual property, or an online business, our team works diligently to protect your rights and ensure a fair division of assets. Divorce can be a difficult process, especially when valuable digital assets are involved. We are here to help you understand your options and advocate on your behalf. Contact our divorce attorney in Rockville to schedule a free consultation at (301) 340-1911. Our office in Rockville, Maryland, serves clients throughout the area, and we are ready to assist you with all aspects of your divorce case.