As digital technology continues to expand, divorces in Michigan are no longer limited to dividing homes, vehicles, and retirement accounts. Increasingly, courts in counties like Ingham, Eaton, Clinton, Livingston, and across Michigan have had to find a way to address digital assets such as cryptocurrency, NFTs, and online businesses.
While Michigan law provides that all property acquired during the marriage is subject to “equitable distribution,” there is little Michigan-specific case law guiding how to handle these new, intangible forms of property. This makes having a Lansing area, very experienced family law attorney essential when digital assets or other intangible assets are at stake.
How Michigan Courts Treat Digital Assets in Divorce
Generally, under Michigan law, property acquired during the marriage is considered marital property and subject to equitable division. There are exceptions for property that was separate and not comingled or used for the benefit of the marriage. Michigan judges in counties like Ingham, Clinton, and Livingston focus on what is fair given the facts and circumstances of each case. This does not always result in a strict 50/50 split. Michigan judges consider a number of factors, including but not limited to each spouse’s contributions, earning capacity, length of marriage, and conduct during the marriage.
With digital assets, the challenge is identification, valuation, and division. Sometimes, our divorce attorneys require additional expertise, so we bring in expert witnesses, often with formal law enforcement training, to assist in our investigation and valuation process.
- Cryptocurrency: Courts recognize cryptocurrency as a financial asset. However, its decentralized nature and volatility make valuation a challenging task. Subpoenas to exchanges or forensic tracing may be needed if one spouse hides crypto in undisclosed wallets.
- NFTs: NFTs are considered a unique digital property. Michigan law does not yet have specific rules for dividing NFTs, but they fall under the general marital property principles.
- Online Businesses: Lots of people in the Lansing area operate e-commerce stores, YouTube channels, or subscription-based platforms. Like traditional businesses, online businesses are valued based on income, goodwill, intellectual property, and market presence. Judges in Ingham, Clinton, Eaton, and surrounding counties may rely on expert valuations.
Legal Tools and Enforcement
Michigan’s laws provide mechanisms to enforce property division, support, and financial disclosure obligations. When digital assets are involved, courts may issue discovery orders, subpoenas, or compel a party to turn over account and asset information.
Failure to disclose cryptocurrency or online income has the same repercussions as hiding other assets. Family courts in Lansing, Charlotte, St. John’s, and elsewhere in Michigan can make retroactive corrections, hold contempt hearings, and even grant sanctions.
Why This Matters for Mid-Michigan Families
In divorce cases filed in Lansing, St. Johns, Charlotte, Ionia, or Jackson, the courts are beginning to encounter disputes over cryptocurrency wallets, NFT collections, and monetized social media accounts. These assets can hold significant value and can be hidden more easily than traditional accounts. A skilled family law attorney can utilize Michigan’s discovery process, police-trained investigators, and court enforcement mechanisms to ensure that assets are properly accounted for. This further ensures your rights are protected and you receive all assets you are entitled to.
The Need for an Experienced Divorce Attorney
Because Michigan law has not yet developed detailed rules for dividing digital assets like crypto, judges in Ingham, Ionia, Lansing, Livingston, and other Michigan Counties rely on general equitable distribution principles. This makes it critical to work with an attorney who understands both the law and the technology. Without quality representation, you risk undervaluing or even losing access to digital assets.
FAQs About Michigan Divorce and Digital Assets
Are cryptocurrencies considered marital property in Michigan?
Yes, if purchased during the marriage or if proceeds were used to benefit the marriage (i.e., pay marital bills, fund vacations, etc.), cryptocurrency is marital property.
How are online businesses valued in a Michigan divorce?
While profits are considered, expert appraisers are often used to determine value.
How are NFTs divided in divorce?
NFTs are treated as digital property. The court may order them sold and the proceeds divided, or award them to one spouse with an offsetting property award.
Why do I need an attorney for digital assets in divorce?
Because Michigan law is still evolving on these issues, only an experienced divorce attorney can ensure assets are identified, properly valued, and fairly divided.
What if my spouse hides cryptocurrency?
Your attorney can request financial disclosures, issue subpoenas to crypto exchanges, bring in investigators trained in locating digital assets, or seek forensic tracing of digital wallets.
Contact Our Office Today
Digital assets are changing the landscape of divorce in Michigan. At The Kronzek Firm, we assist clients with all aspects of property division in divorce all over the Lansing area and beyond, including Eaton County, Ionia County, Clinton County, and Livingston County. Whether it’s Bitcoin stored in a hidden wallet, an NFT collection, or a profitable online store, we know that these assets are subject to division and will advocate for you to receive your fair share. If you’re facing divorce with digital property at stake, consult with one of our experienced Michigan divorce attorneys to protect your financial future.
📞 Our attorneys have helped thousands of Michigan clients over the last 30 years. You can reach our Lansing office 24/7 at (517) 886-1000. Virtual appointments and phone appointments are available during business hours, weekends, and after hours. You can also email our team at contactus@kronzek.law at any time.
[Disclaimer: This content is for informational purposes only and does not constitute legal advice. Consult an attorney for personalized guidance.]