The Impact of Social Media and Digital Assets in High-Asset Divorce Cases

Many people tend to think that their online activities are private, but every website they look at is saved in their history. If they purchase anything online, that record is saved. The same goes for digital media and social media.

Many people post on Facebook and other social media sites on a daily basis. They may post random messages or photos, not worrying about how these posts may come back to haunt them in a divorce. 

Indeed, what you do or say online can and will be used against you when you are trying to agree on issues in a high-asset divorce case. You could lose out on assets and child custody based on your online activities.

How Social Media Plays a Role in High-Asset Divorce Cases

Facebook, Twitter, Snapchat, Instagram, and other social media sites can provide fodder for lawyers looking for dirt on their clients’ spouses in a divorce. Here is how:

• Asset disclosure. Social media can potentially reveal undisclosed assets or expenditures. Photos of luxury vacations, expensive purchases, or lavish parties posted on social media platforms might conflict with the financial disclosures made during the divorce proceedings.
• Evidence gathering. Social media posts, messages, and photos can serve as evidence in divorce cases. Spouses may use these platforms to document their activities and whereabouts, which could be relevant to issues such as infidelity, hidden assets, or parenting capabilities.
• Character assessment. Lawyers may scrutinize social media profiles to gather information about a spouse’s character, behavior, and lifestyle. In high-asset divorce, portraying oneself as financially responsible or in need of support can influence decisions related to alimony, child support, and asset division.
• Custody and parenting issues. Social media activity can be scrutinized when determining child custody and visitation arrangements. Posts or photos depicting parental behavior or lifestyle choices may be evaluated to assess parental suitability.

How Social Media Impacts Divorce

California follows a no-fault divorce system. However, evidence of cheating gathered from social media can still be relevant, especially if it pertains to the misuse of marital funds or impacts child custody. Direct messages, comments, or posts that suggest a romantic relationship outside of the marriage can be used to support claims of infidelity. 

When a spouse is shown to have wasted marital assets, the division of property in a divorce can be affected. Social media can inadvertently document this behavior through posts about gambling, extravagant spending, or giving gifts to a new partner. The court may consider this evidence when deciding how to divide the marital estate. 

Digital Assets in a Divorce

In the past, assets were primarily physical. Nowadays, the younger generations are accumulating wealth in other ways. There are now many types of digital assets and digital income streams. People can increase their net worth through methods such as non-fungible tokens (NFTs), cryptocurrencies, and social media influence.

While these assets are becoming more prevalent, properly valuing them is tough. They are not heavily regulated and yield volatile returns on investment. They are similar to stocks, in which their value is changing constantly; often by the minute.

This makes asset division hard for lawyers and courts. This is especially true for NFTs, which are uniquely one-of-a-kind. There is nothing to compare them to, so splitting them in a divorce can be quite the challenge. The NFT itself cannot be split; only the proceeds from selling them.

California law calls for an equal division of marital property. The task of dividing digital assets involves pinpointing their value at the point of division of the marital estate. The best options are or sell them before the divorce or leave them with the original owner, if possible.

Not many divorcing couples want to do that, though. They want to continue riding the wave of prosperity in hopes of becoming rich. 

Fortunately, the distribution process for cryptocurrency is much easier. The transfer of cryptocurrency between wallets is not taxable, so once the parties reach an agreement, the actual transfer is easy. It is advised to divide the cryptocurrency using an in-kind analysis.

Contact Us Today

High-asset divorce may be shaped by various elements, including digital assets and social media. Those going through a divorce need to be mindful of what they post online and make sure they are not hiding any assets. 

The Law Offices of David M. Lederman has more than two decades of experience handling complex divorce cases for high-net-worth individuals. Don’t settle for anything less than the best outcome. Fill out the online form or call (925) 522-8889 to schedule a consultation.

Anyone going through family law proceedings should refrain from posting on social media. However, old posts, should not be deleted as doing so could be considered the destruction of evidence which could have negative repercussions.

Related Links:

• Remain in control of your privacy when you divorce
• Some things don’t change after divorce if you have children
• Strong emotions can damage you during divorce
• Take care of yourself when you go through a divorce
• The Divorce Process in California: A Step-By-Step Guide
• The Importance of Co-Parenting During and After Divorce: Prioritizing the Best Interests of the Children
• Unexpected impacts of divorce to think about