and crypto)
Digital assets like cryptocurrency and NFTs have added a new layer of complexity to divorce cases in Minnesota. What was once limited to homes, bank accounts, and retirement plans now includes Bitcoin wallets, digital art, and blockchain investments that can be easily hidden or difficult to value.
If you or your spouse own cryptocurrency or NFTs, you need to understand how Minnesota courts treat these assets, how to uncover them during discovery, and how they’re divided under state law.
Protect your rights and get what’s yours in a divorce. Contact an experienced lawyer.
How Minnesota law views cryptocurrency and NFTs
Under Minnesota Statutes § 518.58, all property acquired during the marriage is presumed to be marital property, regardless of whose name it’s in. This includes cryptocurrency, NFTs (non-fungible tokens), and other blockchain-based assets purchased during the marriage.
That means:
- If your spouse bought or traded crypto during your marriage, it’s likely marital property.
- If you owned crypto before marriage or received it as a gift or inheritance, it may be nonmarital property — but you must prove that with documentation and transaction history.
Like any other asset, digital holdings must be disclosed, valued, and divided equitably — not necessarily equally — as part of your property settlement.
Learn more about Minnesota’s property division laws by calling Martine Law.
Step 1: Discovery – Finding cryptocurrency and NFTs
The biggest challenge in digital asset division is discovery — identifying what exists, where it’s held, and how much it’s worth. Cryptocurrency is designed for privacy and decentralization, making it easier to conceal than traditional accounts.
Signs a spouse may be hiding crypto or NFTs
- Unexplained transfers to digital wallets or unknown accounts.
- Mentions of crypto exchanges (Coinbase, Binance, Kraken, etc.) in financial statements.
- Evidence of transactions through payment apps or peer-to-peer transfers.
- Hardware wallets (like Ledger or Trezor) found at home.
- Tax records listing capital gains or losses from digital trades.
Discovery tools your attorney can use
Minnesota divorce attorneys can employ several legal tools to uncover hidden crypto assets:
- Interrogatories and requests for production: Written questions requiring the spouse to list all crypto holdings, wallets, and accounts.
- Subpoenas: Court orders to obtain records from exchanges, trading platforms, or tax preparers.
- Blockchain tracing experts: Specialists who can trace wallet addresses, transactions, and account activity.
- Forensic accountants: Professionals who analyze bank statements and transaction logs for digital asset movements.
Failing to disclose crypto or NFTs during divorce is considered fraudulent concealment and can lead to severe penalties, including sanctions or losing the hidden asset entirely.
If you suspect undisclosed crypto, contact Martine Law’s Minnesota divorce team for help initiating a digital asset investigation.
Step 2: Valuing cryptocurrency and NFTs
Unlike traditional investments, crypto and NFTs can fluctuate wildly in value — even within hours. Minnesota courts require fair market value at or near the date of the divorce or settlement.
Valuation challenges
- Market volatility: The price of Bitcoin, Ethereum, or NFTs can change drastically from one day to the next.
- Multiple holdings: Spouses may own dozens of different coins or digital collectibles.
- Private wallets: Valuing assets held in cold storage requires verified wallet addresses and transaction data.
- Tax implications: Selling crypto to divide proceeds may trigger taxable capital gains.
Common valuation approaches
- Snapshot valuation: Determine the market value on a specific date (such as the date of separation or trial).
- Average valuation: Use the average market price over a fixed period to reduce volatility.
- Expert appraisals: For NFTs or rare digital assets, experts may assess value based on rarity, creator reputation, and recent sale prices.
Because crypto values can shift quickly, it’s critical to document balances and market data at the time of negotiation to prevent later disputes.
Step 3: Dividing cryptocurrency and NFTs
After discovery and valuation, digital assets are divided using the same equitable distribution standard as other marital property.
Division options include:
- In-kind transfer: One spouse receives a share of the crypto or NFTs directly through a wallet transfer.
- Offset exchange: One spouse keeps the digital assets while the other receives an equal value in other marital property (e.g., cash or equity).
- Liquidation: The parties agree to sell crypto holdings and divide the proceeds after accounting for taxes and fees.
Courts typically favor practical solutions that minimize risk and prevent post-divorce disputes.
Important considerations
- Security: Transferring crypto requires proper wallet addresses and two-factor authentication. Mistakes are irreversible.
- Tax reporting: Both spouses must report gains, losses, or transfers accurately to the IRS and Minnesota Department of Revenue.
- Future volatility: A fixed dollar division (rather than a percentage of coins) can protect against price swings.
Your attorney may work with a digital asset accountant or cryptocurrency expert to ensure transparency and accuracy during division.
For additional guidance, visit Martine Law’s family law page.
Protecting yourself from hidden or mishandled digital assets
If your spouse is tech-savvy, it’s possible they may try to hide or manipulate crypto holdings. To protect yourself:
- Request full financial disclosure early in the divorce process.
- Preserve electronic evidence such as device backups, tax returns, and transaction emails.
- Work with professionals experienced in blockchain tracing and forensic accounting.
- Avoid unilateral access or transfers — moving or selling crypto without authorization can violate court orders.
If you’re unsure about the scope of your spouse’s digital assets, discuss an asset freeze motion with your attorney to prevent further transfers during divorce proceedings.
Key takeaways
- Cryptocurrency and NFTs acquired during a marriage are usually marital property under Minnesota law.
- Locating and valuing these assets requires specialized tools and professional assistance.
- Courts divide crypto equitably — often through offset, transfer, or liquidation methods.
- Market volatility, security, and tax implications make expert guidance essential.
- Transparency and accurate documentation protect your financial interests throughout the process.
If your Minnesota divorce involves cryptocurrency, NFTs, or other complex digital assets, Martine Law can help. Our attorneys work with trusted financial and forensic experts to uncover hidden assets, ensure fair valuation, and protect your financial future.
Contact Martine Law today to schedule a confidential consultation about your case.