As digital assets become more common, some Michigan couples are discovering that their property division issues now include items that did not exist a decade ago. Non‑fungible tokens, or NFTs, are one example.
These digital items can represent artwork, collectibles, or other unique files stored on a blockchain. When a couple divorces, NFTs can raise questions about ownership, value and disclosure.
How Michigan treats marital property
Here, property acquired during the marriage is generally treated as marital property, which includes digital assets. If one spouse purchased an NFT during the marriage, it may need to be identified, valued and divided like any other investment.
The challenge is that NFTs do not behave like traditional assets. Their value can rise or fall quickly, and the market for them can be quite volatile. This makes it harder for couples to determine a fair value during the divorce process.
Other challenges with NFTs
Another issue is locating the NFTs in the first place. These assets are stored in digital wallets, and some spouses may not even realize they exist. Others may not understand how to access them.
Because Michigan requires full financial disclosure, both spouses must list any NFTs they own, along with the information needed to verify their existence. Digital wallets, transaction histories, and purchase records can all play a role in confirming ownership.
Verify and authenticate
NFTs rely on blockchain technology to verify authenticity and ownership, which is part of what gives them value. This same technology can also help track when an NFT was purchased, which may be important when determining whether it is marital or separate property.
Understanding how NFTs work and how they are split in divorce can add clarity to the property division process.