Digital assets—cryptocurrency, NFTs, online royalty streams, virtual property, and digital businesses—have rapidly become one of the most common sources of financial dispute in New Jersey and New York divorces. These assets can be volatile, easy to hide, difficult to value, and legally complicated. As a result, searches for “how to find hidden crypto in divorce”, “NJ divorce digital assets”, and “NY equitable distribution crypto” have surged in 2025.
This column explains how digital assets are treated under NJ/NY law, what happens when a spouse hides them, and what you can do to protect yourself.
What Are Digital Assets in a Divorce?
Digital assets include any electronically stored property with monetary value. In modern divorces, this often includes:
- Cryptocurrency (Bitcoin, Ethereum, Solana, etc.)
- NFTs and digital artwork
- Online businesses and accounts generating income
- Digital royalties, domain names, virtual storefronts
- Tokens stored in online or hardware wallets
These assets do not fit neatly into traditional financial documentation. Many spouses first learn about digital holdings only after noticing changes in spending, online behavior, or financial discrepancies.
Are Digital Assets Marital Property Under NJ/NY Law?
New Jersey and New York both follow equitable distribution, which means marital assets are divided fairly based on statutory factors—not automatically 50/50.
Digital assets are typically marital property if:
- They were acquired during the marriage
- Marital income funded the investments
- One spouse expanded, managed, or developed the asset during the marriage
Assets may be separate property if acquired before the marriage or received as a gift or inheritance. However, courts often classify active appreciation—increases in value resulting from effort—as marital property.
For example, if a spouse began an online business before marriage but grew it significantly through marital efforts, the increase in value may be subject to division.
How Courts Value Cryptocurrency, NFTs, and Online Businesses
Valuation is one of the most challenging components of a digital-asset divorce.
Cryptocurrency Volatility
Crypto can fluctuate dramatically, even within hours. To avoid unfairness, courts often set a fixed valuation date—commonly the date of filing the divorce complaint.
NFT Valuation
NFTs can be especially difficult to assess because their markets are thin, unpredictable, and may rely on speculative pricing.
Online Businesses
YouTube channels, Etsy shops, Amazon storefronts, and influencer accounts may require:
- Revenue history
- Subscriber/follower analytics
- Projected earnings
- Business-expense analysis
Because digital valuation requires technical and financial expertise, courts frequently rely on forensic accountants or valuation professionals.
Hidden Cryptocurrency in Divorce: Warning Signs and Legal Consequences
Digital assets can be transferred quickly, stored anonymously, or hidden in undisclosed wallets. Courts have seen a sharp rise in attempts to conceal cryptocurrency during divorce proceedings.
Common Warning Signs
- Unexplained withdrawals or transfers
- Sudden secrecy with devices
- Missing financial records
- High-volume trading activity not disclosed in statements
- Use of privacy coins or offshore exchanges
How Hidden Assets Are Found
Attorneys may use:
- Subpoenas to exchanges and financial institutions
- Blockchain tracing
- Tax return analysis
- Forensic review of electronic devices
- Bank and credit card record audits
Court Penalties for Concealment
A spouse who hides digital assets may face:
- Sanctions and payment of the other spouse’s attorney fees
- Redistribution of assets favoring the innocent spouse
- Imputation of income for support purposes
- Loss of credibility in custody and support disputes
In certain cases, the hidden asset may be entirely awarded to the other spouse.
Tax Issues When Dividing Cryptocurrency and Digital Assets
Cryptocurrency is treated as property for federal tax purposes.
Selling or disposing of cryptocurrency generally creates a taxable event. However, transfers between spouses as part of a divorce settlement are tax-neutral, meaning the transfer itself does not trigger capital gains. The receiving spouse adopts the original cost basis and is taxed only upon later sale.
This distinction matters when deciding whether to:
- Transfer crypto directly
- Liquidate to cash before distribution
- Offset crypto with other marital assets
The optimal method depends on each spouse’s tax exposure, liquidity needs, and long-term goals.
Digital Assets, Debt, and Business Ownership
Digital wealth often exists alongside digital debt. Loans taken to fund crypto investments or online business expenses can be marital liabilities. Courts review:
- The purpose of the debt
- When it was incurred
- Whether it benefited the marital household
Business owners must be especially cautious. Digital revenue streams—subscriptions, advertising, royalties—are included in business valuation.
Custody, Parenting Time, and Relocation Considerations
Digital assets rarely play a direct role in custody rulings. However, a parent’s financial honesty, judgment, and stability always matter.
New Jersey and New York both apply the best-interests standard. When relocation is involved, the moving parent must show how the move enhances the child’s welfare. Unauthorized relocation remains a serious offense and can lead to contempt findings or changes in custody.
Courts may consider patterns of financial deception—including hiding digital assets—when assessing parental credibility.
Alimony and Support in the Digital Asset Era
Digital assets can increase a spouse’s income through trading gains, royalties, or online engagement. Courts may:
- Consider digital income when calculating alimony
- Impute income if a spouse is suspected of hiding digital earnings
- Modify existing support orders if a spouse’s financial circumstances change significantly due to digital-asset volatility
Support orders are not automatically tied to crypto markets, but substantial changes in financial situation can justify a future modification.
What To Do If You Suspect Digital Assets in Your Divorce
If you believe digital assets may be involved in your divorce, taking action early is essential. Preserve all financial records, gather any information you have about accounts, platforms, or devices, and speak with an attorney as soon as possible. Digital assets often require specialized discovery, and waiting too long can allow funds to be transferred, concealed, or reduced in value.
A divorce attorney familiar with digital asset issues can help coordinate forensic experts, trace and value online holdings, and ensure that your financial rights are fully protected throughout the process.
Need Help? Contact Us Today
Digital assets add a layer of complexity and uncertainty to divorce proceedings, but you do not need to face these challenges alone.
Song Law Firm represents clients in divorce matters involving cryptocurrency, NFTs, online businesses, financial support, and custody. We understand both the technical financial issues and the human realities involved in divorce in the digital era.
For a confidential consultation, contact us:
Phone: 201-461-0031
Email: family@songlawfirm.com
We are here to help you protect your finances, your future, and your family.
Disclaimer: This column is for reference only and does not constitute legal advice. For legal guidance on your specific case, please contact 201-461-0031, WeChat: songlawfirm, or email mail@songlawfirm.com to arrange a consultation.
