Digital wealth now goes well beyond Bitcoin. Spouses in Houston, the Houston Heights, Katy, Cypress and The Woodlands may hold NFTs, governance and utility tokens, valuable domain names, monetized social media and creator accounts, or tokenized interests in real-world assets. These holdings can be worth a great deal, or almost nothing, and their value can change quickly. In a divorce, they raise hard questions about disclosure, ownership and valuation.

For mainstream cryptocurrency, see cryptocurrency asset division in modern Texas divorce cases. For companies built on blockchain, see the challenges of valuing cryptocurrency and NFT businesses in divorce.

What Counts as a Digital Asset in Divorce

• NFTs (non-fungible tokens): unique tokens linked to digital art, collectibles, music, event access or in-game items.
• Other tokens: governance, utility and staking tokens beyond major cryptocurrencies.
• Domain names: premium domains can carry significant value.
• Creator and social media accounts: monetized channels, subscription platforms and sponsorship income.
• Tokenized assets: digital tokens representing interests in real estate, funds or other assets.
• Digital content libraries: courses, templates or other products sold online.

Community or Separate Property?

Texas presumes that property possessed by either spouse at divorce is community property (Texas Family Code Section 3.003). NFTs and tokens bought during the marriage with marital funds are community property. Assets created through a spouse’s labor during the marriage, such as NFT art minted and sold by an artist spouse or a creator account built during the marriage, are generally community property too.

Digital assets acquired before marriage, or received by gift or inheritance, may be separate property under Section 3.001, but the spouse claiming that must prove it by clear and convincing evidence. Wallet histories and marketplace records are usually the key evidence.

Owning the Token Is Not Always Owning the Art

Buying an NFT usually gives the holder the token and whatever license the project grants, not the copyright in the underlying artwork. The terms vary by project. That distinction matters in divorce: an artist spouse may own copyrights and future royalties, while a collector spouse may own only tokens with limited usage rights. Our article on dividing intellectual property rights and royalties covers the creator side.

Finding Digital Assets

Digital assets are easy to overlook and sometimes intentionally hidden. Discovery should cover:

• Wallet addresses and the marketplaces and exchanges the spouse uses.
• Bank and card records showing purchases on crypto exchanges or marketplaces.
• Tax returns, including the digital asset question on Form 1040 and sales reported on Form 8949.
• Broker reporting: brokers report digital asset sales to the IRS on Form 1099-DA, starting with gross proceeds for transactions on or after January 1, 2025.
• Domain registrar accounts and payment platform records.
• Creator platform dashboards showing revenue.

Public blockchains allow a forensic analyst to trace tokens from a known wallet to others. See the role of forensic accountants in uncovering hidden assets.

Assets can move in minutes, so consider temporary orders under Texas Family Code Section 6.502 that prohibit transfers and require disclosure of wallets. Hiding or dissipating assets can lead to relief for fraud on the community under Section 7.009.

Why NFT Valuation Is So Difficult

• Thin markets. Many NFTs trade rarely, so a recent sale may not reflect what a buyer would pay today.
• Floor price vs. individual value. A collection’s floor price shows the cheapest listing, but rare items can be worth far more, and many items cannot sell at the floor at all.
• Volatility. Prices can drop or rise sharply in weeks.
• Questionable trading. Some marketplaces have seen trades between related wallets that inflate apparent prices, so sales history must be checked.
• Platform and project risk. If a project is abandoned or a marketplace shuts down, value can collapse.

A qualified expert should review sales of comparable items, current bids and listings, rarity traits, liquidity and the reliability of trading data. In many cases, the most practical solution avoids a precise number altogether.

Practical Division Options

1. Division in kind. Each spouse receives specific tokens or NFTs, so both share market risk.
2. Sale and split. Assets are sold on an agreed timeline and the net proceeds divided after fees and tax.
3. Offset with a risk discount. One spouse keeps the digital assets at an agreed, often discounted, value and the other takes more certain assets.
4. Income sharing for creator accounts. The creator keeps the account, and the other spouse receives a buyout or a share of income for a set period.

The decree should identify each asset specifically, by wallet, token identifier, domain or account, and set transfer deadlines. Vague language invites future disputes.

Tax Considerations

The IRS treats digital assets as property. Selling or exchanging them is generally taxable. Under IRS Notice 2023-27, an NFT can be treated as a collectible, taxed at up to 28% on long-term gains, when the asset or right it represents is a collectible, such as a digital work of art. Creator income, including royalties from secondary sales, is generally ordinary income. Transfers between spouses incident to divorce are generally non-taxable under Internal Revenue Code Section 1041, with carryover basis.

Mistakes to Avoid With Digital Assets

• Relying on a floor price. A collection’s floor is not the value of every item, and many items cannot actually sell at that price.
• Ignoring creator income. If a spouse earns royalties from secondary sales or platform revenue, that income stream may be worth more than the tokens in the wallet.
• Forgetting marketplace and gas fees. Transfer and sale costs reduce net value and should be allocated in the agreement.
• Overlooking domains and handles. Premium domain names and established usernames can be sold and should be inventoried.
• Losing access. If only one spouse knows the passwords, recovery phrases or two-factor devices, a court order may be needed to preserve access for transfer.
• Assuming a project is permanent. If a project’s website or metadata host disappears, the NFT may lose much of its value. Consider that risk before accepting an offset based on today’s prices.
• Skipping tax records. Without purchase history, basis can be hard to prove, and the spouse who sells later may pay more tax than necessary.

Thinking through these issues early helps produce a division that holds up after the decree.

NFT and Digital Asset Divorce Help in Greater Houston

Anunobi Law represents clients in Houston, River Oaks, the Houston Heights, Sugar Land, Katy, Richmond, Missouri City, Fulshear, Stafford, Cypress, Spring, The Woodlands, Conroe and Pearland. Digital assets often appear alongside angel investments and offshore accounts. Learn about our high net worth divorce services, speak with a Houston divorce lawyer, or schedule a confidential consultation.

Frequently Asked Questions

Are NFTs community property in Texas? NFTs bought with marital funds during marriage are presumed community property. NFTs a spouse created during the marriage are generally community property as well.

How do you value an NFT in a divorce? Experts review comparable sales, current listings and bids, rarity and liquidity. Because markets are thin, many couples divide NFTs in kind instead.

Does owning an NFT mean I own the artwork’s copyright? Usually not. Most NFTs grant a license defined by the project, while the creator keeps the copyright.

Can a monetized social media account be divided in a divorce? The account itself usually stays with the creator, but income and value built during the marriage can be part of the community estate and addressed through a buyout or income share.

This article is for general information and is not legal or tax advice. Reading it does not create an attorney-client relationship.