Property division in a Michigan divorce is already complicated enough, but the introduction of new types of property (assets) is creating even greater challenges in Oakland County Family Court and across the state of Michigan. Digital assets, such as cryptocurrency, NFTs, and online businesses, are now becoming common disputes in our divorce cases. Michigan law has not yet fully caught up with these rapidly evolving forms of property, which can make it challenging to divide them equitably in an Oakland County divorce case.
How Michigan Divorce Law Treats Property Division
Traditionally, Oakland County judges have dealt with dividing real estate, vehicles, retirement accounts, bank accounts, and sometimes even pets. But with ever-expanding technology, digital assets raise new questions under Michigan’s laws. Under Michigan’s divorce laws, property acquired during the marriage is generally considered marital property and must be divided fairly or “equitably” between the parties. Note that fairly does not always mean an exactly even split. To figure out what is equitable, Oakland County Circuit Court judges consider the Sparks factors, some of which include the length of the marriage, contributions of the parties, earning abilities, needs, and fault.
Crypto in Michigan Divorce Courts
Cryptocurrency—such as Bitcoin, Litecoin, Soloana, and other digital tokens—is legally considered “property” under Michigan law and subject to division in divorce. However, unlike traditional bank accounts, crypto assets are stored in digital wallets and fluctuate in value on a minute-by-minute basis. This creates unique challenges in three key areas:
- Valuation: Courts often rely on expert testimony to determine the fair market value of cryptocurrency on the date of divorce. Without proper valuation, equitable division becomes nearly impossible.
- Discovery: Michigan law requires full financial disclosure from both spouses. Because cryptocurrency is digital and decentralized, it can be more easily concealed. In Oakland County, hiding crypto assets can lead to increased legal costs, court sanctions, or even contempt proceedings.
- Division: Judges may order cryptocurrency to be liquidated or transferred between digital wallets. The method of division depends on the nature of the asset and the parties’ ability to cooperate.
🎨 NFTs and Divorce in Oakland County
Non-Fungible Tokens (NFTs) are digital assets tied to media such as artwork, music, or video. Like crypto, NFTs are considered marital property if acquired during the marriage. Their value is highly speculative and market-driven, which means:
- Equitable division often requires expert appraisal, especially when the NFT’s value has significantly changed since purchase.
- Ownership and authenticity must be verified through blockchain records, which can be complex and require specialized legal and technical review.
🛍️ Online Businesses and E-Commerce Stores
Many Oakland County residents operate online businesses through platforms like Shopify, Amazon, or Etsy. These ventures are treated like any other marital asset if they were launched or grew during the marriage. Courts will evaluate:
- Business Valuation: Including current revenue, future earning potential, and goodwill.
- Ownership Structure: Whether the business is held individually or jointly.
- Spousal Contributions: Michigan courts recognize both direct and indirect contributions. Even if one spouse managed the business, the other’s support—financial or domestic—may entitle them to a share.
FAQs About Digital Assets in an Oakland County Divorce
Q: Are cryptocurrencies considered marital property in Oakland County?
A: Yes. If purchased or mined during the marriage, they are typically considered marital property and are subject to division.
Q: Can my spouse hide digital assets during our divorce?
A: They may try, but Michigan law requires full disclosure of assets. Courts can compel the production of records, issue subpoenas to exchanges, and impose penalties for non-compliance or concealment.
Q: What happens if my spouse owns an online store?
A: The court will treat it like any other business, valuing income and contributions of each spouse to determine a fair division.
Q: Do I need a lawyer for the digital asset division in an Oakland County divorce?
A: Absolutely. If you’re dealing with digital assets in a Michigan divorce, especially here in Oakland County, it’s crucial to identify the type of currency involved—because that determines how it’s valued, disclosed, and divided. Want help drafting discovery requests or asset disclosures tailored to crypto? We’ve got you covered.
Why You Need an Attorney
Digital assets are often easy to hide and hard to value, which makes divorce cases involving them especially complex. Michigan law provides broad authority for courts to divide marital property fairly, but without the guidance of statutes tailored to cryptocurrency or NFTs, outcomes can vary widely between judges. In Oakland County, an experienced divorce attorney can:
- Ensure full financial disclosure of all accounts and digital holdings.
- Work with forensic experts to trace hidden crypto or online revenue streams.
- Present valuation evidence in court.
- Bring in forensically trained experts to assist with locating and valuing digital assets.
- Protect your interests during settlement negotiations or trial.
Contact Our Office Today!
Protecting Your Digital Assets and Online Business in Divorce
As digital assets and online enterprises become increasingly prevalent across Oakland County and throughout Michigan, they are playing a growing role in divorce proceedings. Whether you or your spouse hold cryptocurrency, NFTs, or operate an e-commerce business, these assets must be identified appropriately, valued, and equitably divided under Michigan law.
At The Kronzek Firm, our attorneys bring decades of experience in complex property division matters, including digital and technology-based assets. We serve clients in Oakland, Macomb, Livingston, and surrounding counties, and we understand the nuances of Michigan’s equitable distribution laws as they apply to modern financial portfolios.
If your divorce involves digital property or an online business, you deserve skilled legal representation that will safeguard your financial interests and ensure a fair outcome. Our team is prepared to advocate for your rightful share and protect your future.
📞 For over 30 years, our attorneys have successfully represented thousands of Michigan clients. You can reach our Farmington Hills office 24/7 at (248) 479-6200. We offer virtual and phone consultations during business hours, evenings, and weekends. You can also contact us at any time via email at contactus@kronzek.law.
[Disclaimer: This content is for informational purposes only and does not constitute legal advice. Consult an attorney for personalized guidance.]