Your NFTs May Be In Danger If Married in a State With No-Fault Divorce

September 29, 2022

By Murtuza Merchant

Do you have a no-fault divorce state marriage and are an NFT collector? If so, the division of marital property into equal halves may include your priceless collection.

In reality, many NFT holders have already had their wives steal 50% of their digital assets.

If you are married in a state that allows for “no-fault” divorce, what happens to your NFTs?

Recently, and for good cause, an increasing number of NFT collectors have begun tweeting about their divorces.

Therefore, people who wed in a US state that allows for “no-fault” divorce must also share their NFT portfolio with their soon-to-be ex-spouses.

One of the 17 no-fault divorce jurisdictions in the US is Wisconsin, where the Bored Ape collector @StonedBrody resides.

A “temporary order hearing” last week demanded that Brody move a portion of his NFTs to his wife’s pocketbook.

In other words, he may lose half of his NFT holdings, which include valuable antiques.

Value determination will be a problem when the time comes, however, it has thus far allowed for delays on my end.

Any conflict between my wife and I will lead to our being liquidated by the court, Brody said in a tweet.

 Surprisingly, MAYC holder @hodlland experienced the same thing. In response to Brody’s reply, the collector informed him that following his divorce, he had to give up 50% of his NFTs.

How can owners of NFTs maintain their assets?

 The only method to protect NFTs, according to @hodlland, is to “get a prenup.” If there is no blame in the divorce, any NFT wallet made during the marriage may be divided.

More often than ever before, the phrase “NFT” is heard in courtrooms nowadays. As of this summer, the New York Court is now issuing court notifications as NFTs; our post has all the information.

About the author

Murtuza Merchant is a senior journalist and an avid follower of blockchain and cryptocurrencies.

Leave a Comment

Your email address will not be published. Required fields are marked *