Digital asset division in South Carolina divorce cases has become one of the most complex issues facing family law attorneys and divorcing couples today. When marriages end in Charleston, Columbia, or anywhere across South Carolina, dividing marital property extends far beyond traditional assets like homes, vehicles, and bank accounts. Modern divorcing spouses must now navigate the division of digital assets—including cryptocurrency, social media accounts, online businesses, and cloud-stored content—that many people don’t even realize qualify as marital property subject to equitable distribution.
What Are Digital Assets?
Digital assets encompass a wide range of electronically stored information and accounts that hold monetary or sentimental value. These assets include:
Financial Digital Assets:
- Cryptocurrency holdings (Bitcoin, Ethereum, etc.)
- Online brokerage and investment accounts
- Digital payment accounts (PayPal, Venmo, Cash App)
- Airline and hotel rewards points
- Online banking accounts
- Digital wallets
Business and Income-Generating Assets:
- E-commerce stores and online businesses
- Domain names and websites
- Social media accounts with monetization
- Digital advertising revenue streams
- Subscription-based online services
- Intellectual property stored digitally
Personal Digital Assets:
- Digital photo and video libraries
- Email accounts
- Cloud storage accounts (Dropbox, Google Drive, iCloud)
- Digital music and movie collections
- E-books and audiobooks
- Gaming accounts and virtual items
How South Carolina Equitable Distribution Law Applies to Digital Assets
South Carolina family courts follow the principle of equitable distribution under South Carolina Code § 20-3-620, meaning marital property is divided fairly, though not necessarily equally. Digital assets acquired during the marriage—from cryptocurrency holdings to online business accounts—are generally considered marital property subject to division in divorce proceedings. Assets owned before marriage or received as gifts or inheritance may qualify as separate property.
The court considers several factors when dividing marital property, including the duration of the marriage, each spouse’s contribution to acquiring assets, and the economic circumstances of each party. These same principles apply to digital assets, though their unique nature can create special challenges.
Cryptocurrency Division in South Carolina Divorce: Bitcoin, Ethereum & Digital Currency
Cryptocurrency presents particular difficulties in divorce proceedings. The decentralized and sometimes anonymous nature of digital currencies can make them easy to hide. Some spouses may attempt to conceal cryptocurrency holdings by transferring them to cold wallets or obscure exchanges.
Key issues with cryptocurrency division include:
Valuation Problems: Cryptocurrency values fluctuate dramatically, sometimes changing significantly between the date of filing and the final hearing. Courts must determine the appropriate valuation date, which can substantially impact the division.
Discovery Challenges: Unlike traditional bank accounts, cryptocurrency holdings may not appear on standard financial statements. Attorneys must know how to request blockchain transaction histories and wallet information during discovery.
Technical Complexity: Many family court judges lack familiarity with blockchain technology and cryptocurrency mechanics, requiring expert testimony to explain these assets properly.
Dividing Social Media Accounts and Online Businesses in Divorce
For couples who have built online businesses or developed valuable social media followings during the marriage, these digital properties can represent significant marital assets. A YouTube channel with substantial subscribers, an Instagram account used for influencer marketing, or an established e-commerce website can generate considerable income.
Courts may consider several factors when valuing these assets:
- Current and projected revenue streams
- Time and effort each spouse invested in building the account or business
- Whether the account is tied to one spouse’s personal brand or identity
- The transferability of the account or business
In some cases, one spouse may retain the digital business or account while the other receives offsetting assets of comparable value. In other situations, especially when both spouses contributed substantially to building the digital property, the court may order the sale of the asset or continued co-ownership with revenue sharing.
Rewards Points and Frequent Flyer Miles
While they may seem trivial, accumulated airline miles, hotel points, and credit card rewards can hold substantial value, particularly for couples who travel frequently or have accumulated points over many years. Some loyalty programs have terms of service that prohibit transferring points in a divorce, which can complicate division.
Courts have taken various approaches to these assets. Some order the liquidation of points for cash or gift cards, which can then be divided. Others may award the entire balance to one spouse while providing offsetting compensation to the other. In cases where points cannot be transferred, the court might require the point-holder to use the rewards for the other spouse’s benefit, such as booking a flight or hotel stay.
Digital Photos and Sentimental Digital Property
Not all digital assets have monetary value. Digital photo libraries, family videos, and other sentimental digital content can be intensely important to divorcing spouses, especially when children are involved.
Unlike physical photo albums that can be divided or duplicated, digital media stored on personal devices or cloud accounts may be subject to access disputes. Spouses should address these items in their divorce agreement to avoid future conflicts. Generally, both parties should receive copies of family photos and videos, particularly those featuring their children.
Protecting Your Digital Assets During Divorce
If you’re contemplating or going through a divorce, take these steps to protect your digital assets:
Document Everything: Create a comprehensive inventory of all digital assets, including account usernames, approximate values, and when they were acquired. Screenshot account balances and cryptocurrency wallet holdings.
Secure Your Accounts: Change passwords on personal accounts, but do not hide or dispose of marital assets. Doing so can result in serious legal consequences, including being held in contempt of court.
Understand Access Rights: Don’t lock your spouse out of jointly owned accounts, as this could be viewed as dissipating or concealing marital assets. However, you can take reasonable steps to protect accounts that are solely yours.
Preserve Evidence: Save emails, text messages, and documents that show the acquisition, management, and value of digital assets. This documentation can be crucial if your spouse attempts to hide or undervalue digital property.
Hire Knowledgeable Counsel: Work with a family law attorney who understands digital assets and knows how to uncover and value them properly.
The Discovery Process for Digital Assets
Thorough discovery is essential when digital assets are involved. Your attorney should submit detailed interrogatories and requests for production that specifically address digital property, including:
- Requests for all cryptocurrency wallet addresses and exchange account information
- Demands for blockchain transaction histories
- Interrogatories about online business ownership and revenue
- Requests for social media account analytics and monetization data
- Production of statements from digital payment platforms
- Information about all cloud storage and email accounts
In cases where a spouse suspects hidden digital assets, forensic analysis of computers, phones, and other electronic devices may be necessary. Digital forensic experts can recover deleted files, trace cryptocurrency transactions, and identify undisclosed accounts.
Valuation of Digital Assets
Accurately valuing digital assets requires specialized knowledge. While some digital property, like cryptocurrency or online bank account balances, has a clear monetary value at any given time, other digital assets require more complex valuation methods.
Online businesses and income-generating digital properties may need professional business valuation, similar to traditional businesses. Valuators examine revenue streams, expenses, market conditions, and growth potential to determine fair market value.
Domain names can be appraised based on factors including length, memorability, search engine optimization value, and comparable sales. Some domains have sold for millions of dollars, making professional appraisal worthwhile for valuable domains.
Social media accounts and digital content platforms may be valued based on metrics such as follower count, engagement rates, advertising revenue, and sponsorship income. Expert witnesses who specialize in digital marketing and social media monetization can provide credible testimony about these values.
Tax Implications of Digital Asset Division
The division of digital assets can have significant tax consequences that divorcing couples should understand. Cryptocurrency transfers between spouses pursuant to a divorce decree may be treated as tax-free transfers under certain circumstances, but subsequent sales of cryptocurrency will trigger capital gains tax based on the original cost basis.
Similarly, the transfer of online businesses or income-generating digital properties may have tax implications. Couples should work with both their divorce attorney and a tax professional to structure the division of digital assets in the most tax-efficient manner possible.
Creating a Comprehensive Digital Asset Agreement
Because digital assets can be complex and subject to rapid changes in value and technology, divorcing couples should ensure their separation agreement or divorce decree specifically addresses these items. A well-drafted agreement should:
- List all known digital assets and their agreed-upon values
- Specify which spouse receives which digital assets
- Address the division of jointly owned digital property
- Include provisions for newly discovered digital assets
- Establish procedures for transferring account ownership
- Address passwords and access credentials
- Specify responsibility for any taxes arising from the transfer
The Future of Digital Assets in Family Law
As technology continues to evolve, family courts will face new challenges in addressing emerging forms of digital property. Non-fungible tokens (NFTs), digital real estate in virtual worlds, and other innovations are already creating new categories of assets that may need to be divided in divorce.
South Carolina family law attorneys and courts must stay informed about these developments to ensure that divorcing spouses receive their fair share of all marital property, regardless of whether it exists in physical or digital form.
Frequently Asked Questions About Digital Asset Division in South Carolina Divorce
Is cryptocurrency considered marital property in South Carolina?
Yes, cryptocurrency acquired during the marriage is generally considered marital property subject to equitable distribution in South Carolina divorce cases. This includes Bitcoin, Ethereum, and other digital currencies held in exchanges, wallets, or other platforms.
How do South Carolina courts value cryptocurrency in divorce?
South Carolina family courts typically value cryptocurrency as of a specific date, often the date of filing, date of separation, or date of the final hearing. Because cryptocurrency values fluctuate significantly, the valuation date can substantially impact the division. Expert testimony may be required to establish proper valuation methods.
Can my spouse hide cryptocurrency during divorce?
While some spouses attempt to conceal cryptocurrency by transferring it to cold wallets or obscure exchanges, experienced family law attorneys know how to request blockchain transaction histories and wallet information during discovery. Forensic cryptocurrency experts can trace transactions and identify hidden assets.
Are social media accounts divided in South Carolina divorce?
Social media accounts can be divided if they generate income or have monetary value. A YouTube channel, Instagram influencer account, or TikTok with monetization may be considered a marital asset subject to division if built during the marriage.
What happens to online businesses in a South Carolina divorce?
Online businesses created during the marriage are marital property subject to equitable distribution. The court may order a business valuation, award the business to one spouse with offsetting assets to the other, or in some cases order the sale or continued co-ownership of the digital business.
Do I have to share my email and cloud storage accounts in divorce?
While the accounts themselves may remain with the individual user, the contents may be subject to division, particularly family photos, videos, and documents. Additionally, these accounts may be relevant during discovery to uncover financial information about other digital assets.
How are airline miles and rewards points divided in divorce?
South Carolina courts can divide airline miles, hotel points, and credit card rewards as marital property. However, many loyalty programs have terms of service that restrict transfers. Courts may order liquidation of points, award them to one spouse with offsetting compensation, or require the point-holder to use them for the other spouse’s benefit.
What should I do to protect my digital assets during divorce?
Document all digital assets with screenshots and account information, secure your personal accounts by changing passwords, but do not hide or dispose of marital assets. Work with a South Carolina family law attorney experienced in digital asset division to ensure proper protection of your rights.
Contact a Charleston Digital Asset Divorce Attorney
Digital assets represent a significant and growing component of marital estates in South Carolina divorce cases. From cryptocurrency holdings worth thousands or even millions of dollars to treasured family photos stored in the cloud, these assets deserve careful attention during the divorce process.
If you’re facing divorce in Charleston, Mount Pleasant, Summerville, or anywhere in South Carolina and have concerns about digital asset division—whether cryptocurrency, online businesses, social media accounts, or other digital property—it’s crucial to work with an attorney who understands both family law and the complexities of modern digital assets. Proper identification, valuation, and division of these assets can significantly impact the financial outcome of your divorce.
The attorneys at Klok Law Firm LLC in Charleston have extensive experience handling complex property division matters, including cases involving cryptocurrency, online businesses, and all forms of digital assets. We understand the technical and legal challenges these assets present and know how to protect our clients’ interests through thorough discovery, expert valuation, and strategic negotiation.
Contact our Charleston office today at [phone number] or schedule a consultation online to learn how we can help you navigate digital asset division in your South Carolina divorce with confidence.
This blog post is intended for informational purposes only and does not constitute legal advice. Every divorce case is unique, and the division of assets depends on the specific facts and circumstances involved. For advice about your particular situation, please consult with a qualified family law attorney.