Going through a divorce will always be messy, especially when both parties are fighting over the division of owned properties. As if that does not complicate things enough, the information age also brought on a new form of property–digital assets.
Essentially, a digital asset is anything of value that is capable of creation and storage digitally. The most significant and valuable are usually cryptocurrencies and intellectual properties.
When you’re getting divorced, your digital assets are not safe from being included in the property division process. So you will need to know a few things to protect yourself and your digital properties.
Division of Assets
Arguably, the most challenging part of the divorce process is the property division between spouses. Allocating assets and debts accumulated over years of marriage is something that rarely goes peacefully.
In Canada, each province has its own regulations on the division of property. The courts usually try to distribute them equally as possible.
Property division is already challenging enough with the different types of assets, such as cars, bank accounts, houses, and other investments. When digital assets come into the picture, things get more complex very quickly.
Here are examples of digital assets you want to research with your Toronto family lawyers to protect yourself.
Cryptocurrency
Cryptocurrencies are digital assets created and secured through cryptography. The most popular include Bitcoin, Litecoin, Ethereum, Dogecoin, and Ripple. Bitcoin has been one of the first, most popular, and largest cryptocurrencies since its creation in 2009.
Its decentralized system separates it from conventional currencies like Dollars, Yen, and Euros. Unlike traditional currencies, cryptocurrencies provide peer-to-peer transactions to store value without dealing with any financial institution or government office.
Users typically secure their cryptocurrencies in a digital wallet. They also use this wallet for purchasing goods, paying for services, and other transactions, just like a conventional currency.
Intellectual Property
Anything you create from your own ideas counts as intellectual property. It can be anything from a design or invention to the name of a brand, literary piece, or illustration.
Even without a physical form, it still counts as a property you own the same way you would a house. That ownership also comes with the same protections and rights as physical assets.
Intellectual property can come in different forms depending on the nature of your creation. Typically they classify under either one of the following intellectual property types:
Patents
Patents are exclusive rights to an idea involving new inventions, useful products, or modifications to existing creations. Examples of these include:
- drug formulas
- new production processes
- display systems on screens
- other scientific advancements
Copyright
Copyright covers anything that falls under literary masterpieces, musical compositions, and artistic illustrations. That also covers digital works of fiction like video games and NFT artworks.
Trademark
Trademark refers to anything that is a logo, word, or group of words that identifies your business’ products or services. It makes a business unique and distinguishes your brand from other vendors.
Figuring out how to protect your digital assets is tricky, especially during divorce settlements. However, with this simple guide, you should have a better understanding to stay on top of things with your lawyer.
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