Just a few short decades ago, dividing assets in a divorce mostly consisted of looking at financial and real estate records. While a spouse might still try to hide assets, it was often fairly easy to trace most of these attempts. Today, it is a whole different ball game with digital assets.

A digital asset can include anything that is stored electronically or in the cloud and that has some type of value. Digital assets like intellectual property, cryptocurrency, and media collections present unique issues during a Texas divorce. This includes tracing these assets and assigning a value to assets that don’t necessarily have a traditional value. Our Austin divorce lawyers can help you with this process, working with experts to protect your digital assets in a divorce.

Based in Austin, the Law Office of Jason Wright advocates for clients throughout the region in a range of family law matters. We have experience handling cases involving more complicated types of assets, such as digital assets like crypto and social media accounts. Reach out to our law firm today to schedule a consultation with a Texas divorce attorney.

Types of Digital Assets

When thinking about your assets, your thoughts probably go towards tangible items, such as real estate or bank accounts. Yet in 2025, assets can mean a lot more than just things that you could potentially touch or hold in your hands. It can also include a range of digital assets.

A digital asset can include anything stored electronically that has value, establishes ownership, and is discoverable. It can include a range of things, such as:

• Photos and videos
• Books
• Audio/music
• Data
• Documents
• Manuscripts, illustrations, and animations
• Emails and email accounts
• Logos
• Social media and gaming accounts
• Rewards accounts, including travel miles or points 
• Content
• Intellectual property
• Non-fungible tokens (NFTs)
• Cryptocurrency
• Tokens
• Tokenized assets

For example, consider a situation where a couple decides to put many of their household expenses onto a joint credit card to rack up airline miles for travel. In the divorce, these miles would be considered a digital asset that is subject to division. Similarly, if a couple shares an Audible account or another type of media account, then the digital titles that they purchased may be subject to division in a divorce.

Of course, many Texans have invested in a more direct type of digital asset, such as Bitcoin.

According to the Internal Revenue Service (IRS), a digital asset is any “digital representation of value recorded on a cryptographically secured, distributed ledger (blockchain) or similar technology.” For tax purposes, these digital assets are considered property, not currency. Cryptocurrency is subject to property division in a Texas divorce if it is considered marital property.

In the modern era, another type of digital asset is becoming more common: social media accounts. Many influencers make their living through content creation, which often includes family members and friends. Even if they are the only ones who appear on camera, they may utilize community property, like a jointly-owned computer or house, to make their content. This is an asset that must be considered when dividing property in a divorce.

Issues Raised by Digital Assets During Property Division

Texas is a community property state. Spouses equally own any community property and are equally responsible for community debts. When a couple gets divorced, this community (or marital) property is split equitably or in a way that is “just and right.”

Generally, community property is any property that either spouse acquires during the marriage. In Texas, courts will presume that any item that a spouse owns during marriage is community property unless they can prove that it is separate property. An asset may be considered separate property if it is:

• Property acquired by a spouse prior to marriage;
• Property acquired by a spouse through gift or inheritance; or
• A recovery for personal injuries (except lost earning capacity).

At the start of a divorce, both spouses are required under Texas law to provide a complete account of their financial status. This includes listing all assets and debts, including digital assets. 

In modern divorces, the question of whether all digital assets have been disclosed can be a big one. It can be far easier for one spouse to hide assets like cryptocurrency than traditional investments. In other situations, a party may not realize that certain assets must be disclosed.

When it comes to hidden assets, our Austin divorce attorneys work with forensic accountants to trace digital assets. Specifically, crypto tracing is a type of forensic accounting where an expert examines bank accounts to determine if any money was transferred to a crypto exchange. This allows an accountant to follow the trail to find hidden assets such as crypto.

For financial disclosures, it is important to take the time to do a thorough inventory of all of your digital assets to avoid potential sanctions. This inventory should include account details, passwords, and the value of assets such as:

• Online financial accounts, including investment accounts, online bank accounts, and digital wallets such as PayPal or Venmo.
• Cryptocurrencies such as Bitcoin, Ethereum, and other currencies.
• Digital media collections of purchased movies, eBooks, music, and other media
• Intellectual property, such as blogs, websites, trademarks, and patents.
• Online businesses such as e-commerce stores, affiliate marketing websites, and other online business ventures.
• Social media accounts, including Facebook, Instagram, Twitter, and LinkedIn.
• Loyalty programs and points, such as frequent flyer miles and hotel points.
• Subscription services, including streaming services, software subscriptions, and other ongoing digital services.
• Personal data, including digital photos, videos, and other data stored on devices or in the cloud.

To avoid the risk of being sanctioned for failure to list these assets, it is important to do a thorough inventory of all of your digital assets. Even if a particular account doesn’t have an obvious monetary value, such as a social media account that is not monetized, it is often better to be overinclusive than underinclusive. 

If you have personal accounts that your soon-to-be-ex might have access to, then it may also be a good idea to change your passwords. This does not mean that you will automatically get the asset in a divorce. However, if you have any concerns about your spouse accessing these accounts, you might be better off making sure that they cannot get into it before you come to an agreement or a court determines who gets that particular asset.

The next issue that comes up with digital assets in a divorce is determining value. After all assets are disclosed, each must be assigned a value. This can be tricky with digital assets, many of which don’t have a traditional value or whose value can swing wildly depending on market conditions.

For example, the value of assets like cryptocurrency can fluctuate significantly over days or even hours. The crypto market is much more volatile than more traditional financial markets, making it an asset that is harder to value. Other digital assets, such as NFTs or intellectual property, can be difficult to value given the unique nature of the asset. 

Our law firm works with experts with experience in valuing these types of assets. When it comes to assets with fluctuating value, we often suggest coming to an agreement that fixes the value as of a certain date (such as the day that you filed for divorce). Our experts can also examine more unusual assets to set a value for them based on the price paid and current market conditions.

How to Protect Your Digital Assets in a Texas Divorce

The intangible nature of digital assets can make it difficult to fully account for this type of property in a divorce. There are a few things to keep in mind when it comes to protecting your digital assets in a divorce.

First, even if you think that your spouse is not aware of some of your digital assets, you absolutely must disclose them during a divorce. Hiding assets such as cryptocurrency can lead to severe consequences. Depending on the facts of the case, this could include asset forfeiture, fines, and even jail time.

Second, digital assets, like any asset, is considered marital property if acquired during the marriage. Even if you bought some cryptocurrency from your own account during the marriage without telling your spouse, you still must disclose it. Remember: Texas courts will presume that any assets acquired during marriage are community property. You must disclose the assets and then prove that they are separate property if you want them not to be subject to equitable division.

Our law firm is adept at developing the necessary evidence to prove that a particular asset is separate property. This can be an uphill battle in Texas courts, but it is possible to demonstrate that you acquired or created a particular digital asset prior to marriage or through gift or inheritance. In this way, we can potentially protect your separate property from division in a divorce.

Third, many types of digital assets present unique issues when it comes to property division. It is critical to work with an Austin divorce lawyer who has experience with these types of assets and the right connections to financial experts who can help to protect your rights. Working with these experts, our legal team can assist with:

• Tracking and identifying assets that may be stored in digital wallets or other places that can easily be hidden or transferred;
• Advising on the tax implications of transferring or selling digital assets;
• Valuing cryptocurrency, NFTs, and other types of digital assets.

Fourth, many types of digital assets have sentimental value. This often leads to more fights or arguments over property that might not have much financial value. For example, if you and your ex shared a digital library of music, you might be dead set on keeping that music for yourself,  even though you could stream the same content on a different platform.

Again, this is a situation where working with an experienced Texas divorce attorney is key. Divorces can be challenging both financially and emotionally. Our job is to provide objective legal advice so that you can make the best possible decision to protect your interests, including your right to digital assets.

We can help you with every aspect of the process, from identifying digital assets to getting them properly valued. We will also develop a proactive strategy that is designed to protect both your physical and digital assets. Throughout the divorce proceedings, we will stand by your side and work to protect your interests.

Contemplating Divorce? We Can Help.

Digital assets have become far more common in divorces, yet the law hasn’t fully evolved to address the unique issues that they pose. Our Austin high-net-worth divorce attorneys will evaluate your digital portfolio to develop the best possible strategy for protecting these assets. We will also offer you advice on the steps that you can take to protect your assets throughout the process, including performing a full inventory and changing passwords to avoid unauthorized access.

At the Law Office of Jason Wright, we represent individuals in complex divorces, including those that involve significant digital assets. We have professional relationships with a range of experts who can assist with tracking, discovering, and valuing digital assets.  To learn more or to schedule a consultation with our law firm, give us a call at 512-706-9662 or fill out our online contact form.