Are you an NFT collector who married in a ‘no-fault’ divorce state? If so, your precious collection might be included in the 50/50 marital property process. In fact, many NFT holders already had 50% of their digital assets taken away by their spouses.
What happens to your NFTs if you’re married in a ‘no-fault’ divorce state?
Recently, more and more NFT collectors have been sharing their divorce stories on Twitter – and for good reason. Accordingly, those who married in a ‘no-fault’ divorce US state must share their NFT portfolio with their soon-to-be ex-spouses too.
For example, Bored Ape collector @StonedBrody lives in Wisconsin – one of the 17 no-fault divorce states in the US. This week, a ‘temporary order hearing’ called on Brody to transfer part of his NFTs to a wallet managed by his wife.
In other words, he might lose half of his NFT portfolio, including blue-chip collectibles.
“Value determination when time comes is going to be a nightmare, but has also allowed for delays on my end to this point. Any disagreement by my wife and I will result in court ordered liquidation,” Brody wrote in a tweet.
Surprisingly, the same happened to MAYC holder @hodlland. The collector replied to Brody’s message saying he had to surrender 50% of his NFTs after his divorce.
How can NFT holders keep their assets?
According to @hodlland, the only way to keep NFTs safe is to “get a prenup”. Otherwise, any NFT wallet created during the marriage can be subject to division in a no-fault divorce state.
Today, courts are hearing the term ‘NFT’ more than ever before. The New York Court is even serving court notices as NFTs as of this summer – and our post covers all of the details!
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This article is educational material.
As always, make your own research prior to making any kind of investment.