Digital assets like cryptocurrency and NFTs (non-fungible tokens) are transforming how people invest, save, and trade — and they’re also complicating divorce cases. When one or both spouses hold crypto or NFTs, questions arise: How are these assets discovered? How are they valued? And how are they divided under North Carolina law?
Because digital assets can be hidden, volatile, and difficult to trace, handling them correctly during divorce requires careful legal and financial strategy. Here’s how North Carolina courts approach cryptocurrency and NFTs in equitable distribution, and what you need to know to protect your financial interests.
North Carolina’s Equitable Distribution System
North Carolina follows the equitable distribution system for dividing marital property under N.C. Gen. Stat. § 50-20. This means assets and debts are divided fairly, not necessarily equally.
Before dividing property, the court must:
- Classify each asset as marital, separate, or divisible.
- Value each asset as of the date of separation.
- Distribute the property equitably between spouses.
Cryptocurrency and NFTs are treated like any other property — but identifying and valuing them can be much more complex
Contact a North Carolina divorce lawyer..
Step 1: Discovery — Identifying Hidden or Undisclosed Crypto
One of the biggest challenges in crypto-related divorces is finding all the assets. Because cryptocurrency can be easily transferred, stored anonymously, or hidden in digital wallets, one spouse may attempt to conceal it.
During the discovery process, attorneys use tools such as:
- Formal financial disclosures (required by the court).
- Subpoenas to exchanges (like Coinbase, Binance, or Kraken) to obtain transaction histories.
- Blockchain forensic analysis, which tracks transactions using wallet addresses.
- Bank records showing fiat currency transfers to or from exchanges.
If a spouse fails to disclose crypto holdings, the court can impose sanctions and award a larger share of assets to the other spouse. Transparency is critical — hiding crypto assets can amount to fraud.
Step 2: Classifying Crypto and NFTs as Marital or Separate Property
The next step is to determine whether the digital assets are marital or separate property.
- Marital property: Acquired or earned during the marriage (even if held in one spouse’s name).
- Separate property: Owned before the marriage or received as a gift or inheritance.
Crypto purchased with marital funds during the marriage — even if stored in a private wallet — is generally considered marital property. Likewise, if one spouse used marital income to invest in NFTs, those assets will likely be included in equitable distribution.
However, crypto acquired before marriage or through personal gifts or inheritance usually remains separate property, unless commingled with marital assets (for example, by adding it to a joint account or selling it to purchase joint assets).
Step 3: Valuing Cryptocurrency and NFTs
Valuing digital assets can be one of the most difficult parts of the process. Cryptocurrency prices fluctuate by the minute, and NFTs often have no fixed market value.
Courts in North Carolina typically use the fair market value at the date of separation as the reference point. To establish value, attorneys may:
- Obtain exchange statements showing wallet balances and prices at the date of separation.
- Work with financial experts or forensic accountants who specialize in digital assets.
- Use average market prices from reputable exchanges.
For NFTs, the valuation is more complex. It often depends on the asset’s market demand, uniqueness, and recent sale history. Expert appraisers familiar with blockchain technology and digital collectibles are often brought in.
Because crypto and NFT markets are volatile, judges may allow updated valuations or consider post-separation changes when deciding on equitable division.
Step 4: Dividing Crypto and NFTs Fairly
Once classified and valued, digital assets are divided as part of the overall property distribution. Courts can divide crypto in several ways:
- In-Kind Transfer: One spouse receives a portion of the cryptocurrency or NFT directly into their own digital wallet.
- Buyout: One spouse keeps the crypto and compensates the other with cash or other assets equal to their share.
- Sale and Split: The crypto or NFT is sold, and the proceeds are divided between the parties.
The choice depends on the couple’s preferences, tax implications, and each spouse’s ability to manage digital wallets securely.
It’s important to note that some exchanges restrict account transfers or require additional documentation for division during divorce, which can delay the process.
Tax Considerations for Digital Assets
Both cryptocurrency and NFTs are considered property for tax purposes under IRS guidance. This means that:
- Selling or trading crypto triggers capital gains taxes.
- Transferring crypto as part of a divorce settlement, however, may be non-taxable under IRS Section 1041, as long as it’s part of a court-ordered division.
Still, both parties should track cost basis, acquisition dates, and any taxable events. Working with a tax professional experienced in digital assets is essential.
How Hidden Crypto Can Affect Your Case
If one spouse tries to hide or transfer crypto to avoid division, it can have serious legal consequences. North Carolina courts take asset concealment seriously — judges can:
- Reopen equitable distribution to include undisclosed assets.
- Award a larger share of marital property to the honest spouse.
- Impose sanctions or attorney’s fees on the concealing spouse.
To prevent this, your attorney can issue subpoenas, request detailed financial records, and use blockchain tracing tools to follow transactions across wallets and exchanges.
Practical Steps for Spouses in a Crypto Divorce
If you suspect cryptocurrency or NFTs are part of your marital estate, take these steps early:
- Document all financial activity — bank transfers, exchange accounts, or crypto purchases.
- Secure digital records — screenshots, transaction IDs, and exchange statements.
- Work with experts — forensic accountants or crypto investigators familiar with blockchain technology.
- Avoid self-help access — do not try to access or move your spouse’s crypto; this could violate privacy or court orders.
- Discuss division options with your attorney — in-kind, buyout, or liquidation.
When to Seek Legal Help
Dividing cryptocurrency and NFTs in a North Carolina divorce requires specialized knowledge of both equitable distribution law and digital asset technology. Small mistakes can lead to major losses or tax issues down the road.
A skilled North Carolina divorce attorney can help you:
- Identify and trace hidden crypto assets.
- Work with forensic experts to value them accurately.
- Negotiate a fair division or advocate for you in court.
Key Takeaway
Cryptocurrency and NFTs are part of a growing number of North Carolina divorces — and their unique nature demands precision and transparency. Courts treat them like any other marital property, but discovery and valuation require expert support.
If digital assets are part of your divorce, don’t navigate it alone. The team at Martine Law has experience handling complex asset division cases, including crypto and digital investments. We can help you uncover hidden assets, ensure accurate valuation, and protect your financial future.
Contact us today to schedule a confidential consultation.
Primary Keyword: cryptocurrency divorce North Carolina
Meta Title: Cryptocurrency and NFTs in North Carolina Divorce
Meta Description: Learn how North Carolina courts handle cryptocurrency and NFTs in divorce, including discovery, valuation, and equitable division of digital assets.