As personal lives become increasingly intertwined with technology, it stands to reason parties will need to address the issue of digital assets when going through divorce in Illinois. Part of any dissolution proceeding is determining how to divvy up all property acquired during the marriage, so you must be prepared to consider items in electronic form, stored within the Cloud, or otherwise digital in nature. Ideally, you would want to attempt agreement on distribution of this unique category of property, since the parties have more control over the process.
You need to understand how Illinois law applies, so you know what to expect if a judge decides on how to divide you and your spouses’ digital assets. Your Chicago property division attorney can advise you on the specifics, but an overview may be useful.
Synopsis of Asset Division Laws:
Under Illinois’ statute on distribution of assets, all property acquired during a couple’s marriage is subject to equitable division between the parties; the law encompasses any item that has value, including digital assets. Therefore, there are two (2) factors related to division of property in electronic form:
- Whether the parties obtained the digital asset after the wedding date;
- How to divide the digital asset in the interests of fairness and equity, in consideration of all other marital property that will be distributed between the parties.
Types of Digital Assets Subject to Illinois Property Division Laws:
To better understand the application of Illinois’ statute, it may be helpful to review the types of digital assets parties may need to address in divorce, which can have significant commercial value or be purely sentimental.
- Streaming subscription services, such as Netflix, Amazon Prime Video, Microsoft Stream, or iTunes, which often include electronic versions of music, books, and video games. Game developers have primarily shifted to an online, downloadable format, often with a monthly subscription or access fee. Many roleplaying games allow players to purchase assets in the game as digital property;
- Bitcoin and other cryptocurrency, which exists entirely in digital form, as well as digital businesses, such as Amazon business accounts, or eBay storefronts;
- Personal photos, ancestry research, frequent flyer accounts and videos stored in the Cloud or other online services and;
- Business website/website domain names, passwords and access to investment and social media accounts and blogs.
Options for Dividing Digital Assets:
Since Illinois law favors compromise on divorce-related issues, it is possible for parties to enter into an agreement regarding the distribution of digital assets. Negotiations often start with determining the value of the property, followed by discussions on how to divide digital assets between the parties. Options include one spouse buying out the other for fair market value or turning over access to a digital account.
If you cannot agree on how to distribute digital property, the court will decide the issue after conducting a hearing. The principles of equity are paramount, so the arrangement may not be an equal, 50-50 split.
A Chicago Property Division Lawyer Can Provide More Information
Digital assets may be a unique type of property in an Illinois divorce case, but they still have value as part of the marital estate. For this reason, it is essential to have skilled legal representation to protect your interests. To learn how our team can assist with negotiations and court proceedings on property division, please contact Michael C. Craven at (312) 621-5234 or via our website. We can set up a consultation at our offices in Chicago, IL to discuss your case.
