How Are Digital Assets Divided In A Divorce?

In Rhode Island, the division of digital assets in divorce proceedings reflects the state’s commitment to equitable distribution. As couples increasingly intertwine their lives offline and online, digital assets such as cryptocurrency holdings, online business revenues, and digital content rights become significant elements of marital estates. Rhode Island courts aim to ensure a fair division, treating these assets similarly to physical property by evaluating their current value and potential future worth. This approach ensures that both parties receive a just portion of the digital wealth accumulated during the marriage, acknowledging the evolving nature of assets in our increasingly digital world.

Steps To Figuring Out How To Divide Digital Assets

In today’s digital age, divorcing couples must consider more than just physical and financial assets. Digital assets, encompassing a broad range of online and electronic properties, have become increasingly significant. Understanding how these assets are divided during a divorce is crucial for ensuring a fair settlement.

  • Identify the Digital Assets: Digital assets must first be classified as marital or separate property. Marital property typically includes assets acquired during the marriage, while separate property includes assets owned before the marriage or acquired by gift or inheritance. Similar to physical and financial assets, both parties must disclose all digital properties.
  • Types of Digital Assets: Digital assets can include cryptocurrency, online investment accounts, digital media (photos, videos, music libraries), social media accounts, domain names, online businesses, virtual real estate, and even loyalty programs – such as frequent flyer miles, hotel points, and other reward programs.
  • Valuing Digital Assets:  Valuing digital assets can be complex and may require professional assistance. Digital assets must be valued appropriately, which may require expert appraisals, particularly for assets like cryptocurrency or online businesses, whose value can fluctuate significantly.
    Factors to consider include:

    1. Market Value: For cryptocurrencies and online businesses, market value is crucial.
    2. Replacement Cost: Consider the cost of replacing or reproducing the asset for digital media and software.
    3. Future Value: Some digital assets, such as intellectual property, may have future earning potential.

Methods of Division

Once digital assets are identified, classified, and valued, they are subject to division. To determine a fair distribution, the court considers various factors, such as the length of the marriage, the parties’ conduct, contributions to the marital estate, and each party’s economic circumstances.

The methods include:

  1. Equal Division: Assets are split 50/50.
  2. Equitable Division: Assets are divided based on fairness, considering each party’s contribution and needs. Rhode Island is an equitable distribution State which means that digital assets will be divided in the same way as physical assets, based on fairness and considering each party’s contribution and needs.
  3. Offsetting: One party may retain certain digital assets while the other receives equivalent value in other assets.

Special Considerations and Practical Considerations

  • Cryptocurrency: The volatile nature of cryptocurrencies requires careful consideration. It’s essential to account for current market value and potential future fluctuations.
  • Intellectual Property: For assets like blogs or websites that generate income, consider how future earnings will be divided.
  • Online Accounts: Some accounts cannot be divided but can be transferred or assigned to one party, with compensation given to the other.
  • Access and Control: Practical considerations include who has access to and control over the digital assets. For example, transferring ownership of certain digital assets may require account login information or legal documentation changes.

Protecting Digital Assets

Both parties should take steps to protect their digital assets during divorce proceedings:

  • Change Passwords: Ensure that personal accounts are secure by changing passwords.
  • Backup Data: Create backups of important digital files to prevent loss or manipulation.
  • Legal Agreements: Formalize the division of digital assets through legal agreements to avoid future disputes.

Legal and Privacy Issues

Digital assets often involve privacy and security concerns. During a divorce, it is crucial to:

  • Respect Privacy: Avoid accessing the other party’s personal accounts without permission.
  • Comply with Laws: Ensure that the division of digital assets complies with relevant Rhode Island laws and regulations.

Seeking Professional Help

Given the complexities involved, consulting with professionals such as:

  • Divorce attorneys who are experienced in handling digital asset division.
  • Financial advisors who can value and manage digital assets.
  • IT experts who can provide technical assistance in accessing and securing digital assets.


Dividing digital assets in a divorce requires careful consideration and expertise. Both parties can achieve a fair settlement by identifying, valuing, and equitably distributing these assets. PALUMBO LAW has experienced divorce attorneys who can provide you with professional guidance to navigate the complexities and protect your digital wealth during the divorce process. Contact us today.

The content of this blog is intended to be general information and does not constitute legal advice. Please consult with a qualified lawyer regarding your specific situation.