When most people think of divorce, they picture dividing the family home, cars, and bank accounts. But in today’s world, marital estates often include unique or unusual assets that don’t fit neatly into traditional categories. From cryptocurrency to intellectual property, valuable collections, and even frequent flyer miles, dividing these assets in Illinois divorce cases can be complex.
At Robert M. Kaplan, P.C., we’ve seen firsthand how couples in Schaumburg, Illinois, face these challenges and how the courts handle them. Here’s a closer look at how some of the most distinctive assets are treated.
Cryptocurrency
In recent years, cryptocurrencies like Bitcoin and Ethereum have become a frequent issue in divorce cases. Its decentralized nature and volatility make it unlike any traditional investment.
Crypto's Valuation and Volatility
One of the biggest challenges is how to value cryptocurrency. Courts often set the value of assets as of a specific date, such as the date the divorce petition is filed. But because cryptocurrency can fluctuate dramatically, sometimes in a single day, this creates difficulties. For example, a holding worth $20,000 at filing might be $35,000 or $15,000 by the time the divorce is finalized. This volatility means both parties and their attorneys must be prepared for possible swings in value.
How to Divide Cryptocurrency
There are several ways Illinois courts may divide cryptocurrency:
- Sell and split the proceeds — The cryptocurrency can be sold at its current market value, and the spouses split the cash.
- Transfer a portion — One spouse may transfer part of the cryptocurrency to the other spouse’s digital wallet.
- Offset with other assets — Instead of splitting the crypto itself, one spouse may keep it while the other receives more traditional assets of equal value.
Intellectual Property
Unlike a physical home or car, intellectual property (IP) is intangible, but that doesn’t mean it’s excluded from divorce. Patents, copyrights, and trademarks can hold significant value and generate income streams for years to come.
Marital vs. Non-Marital Property
The first question is whether the IP is marital or non-marital property. If it was created during the marriage, it’s typically considered marital property, even if only one spouse was directly involved in its creation. If the IP was owned prior to the marriage, it may be classified as non-marital.
Types of Intellectual Property
Common forms of IP include:
- Patents — Rights to inventions or processes that may generate licensing income
- Copyrights — Rights to original works, such as books, music, or artwork
- Trademarks — Rights to brand names, logos, or symbols associated with goods or services
The "Creator" vs. "Non-Creator" Spouse
Illinois courts often award the IP itself to the spouse who created it, since they are the one most able to manage and benefit from it. However, the non-creator spouse is not left out. Courts may compensate them by:
- Granting a larger share of other marital property
- Ordering ongoing royalty payments as the IP generates income
This approach aims to balance fairness with practicality.
Valuable Collections Like Fine Art, Antiques, and More
From fine art to vintage baseball cards, collections can represent both financial and sentimental value. But they also bring unique challenges in divorce.
Establishing the Collection's Value
Determining the worth of collections requires a professional appraisal. Courts generally rely on experts who specialize in the type of collection. For example, there are art appraisers for paintings, certified gemologists for jewelry, or sports memorabilia specialists for signed cards.
The Problem with “Splitting” the Collection
The main challenge is that you can’t split a painting in half or divide a single antique clock. These assets are indivisible, which forces the court and the parties to find practical alternatives.
Solutions for Division
Common methods include:
- Sell the collection — The items are sold, and the proceeds are divided.
- Award the collection to one spouse — The spouse who values or manages the collection may keep it, while the other spouse receives other assets to offset its value.
This aims to ensure fairness while preserving the collection’s integrity.
Frequent Flyer Miles and Rewards
It may sound surprising, but frequent flyer miles and loyalty rewards are considered marital property in Illinois when earned during the marriage.
Marital Asset Status
Even though they aren’t cash, loyalty points can hold significant value, especially if one or both spouses traveled extensively for work or leisure.
How to Divide Frequent Flyer Miles and Rewards
Courts recognize the unique nature of these assets and may divide them in a few ways:
- Offset with other assets — One spouse keeps the points while the other receives assets of comparable value.
- Share usage – In some cases, spouses may agree to use up the points before finalizing the divorce.
- Transfer the rewards, if allowed – Some programs permit transfers of points, though restrictions vary by airline or credit card company.
Why Might Dividing Unique Assets Require an Attorney?
When it comes to unusual assets in a Schaumburg divorce, there is rarely a one-size-fits-all solution. Each type of property requires:
- Careful documentation
- Professional valuation
- A tailored strategy for division
At Robert M. Kaplan, P.C., we help clients navigate these complexities with clarity and confidence. Our goal is to protect your rights and secure fair outcomes.
Call Our Divorce Lawyer in Schaumburg, IL
Divorce is rarely simple, but when unique assets are involved, it becomes even more important to work with an attorney who understands the nuances. From volatile cryptocurrencies to cherished collections, these assets require thoughtful planning, expert insight, and skilled legal advocacy.
If you’re facing a divorce involving unique or unusual assets in Schaumburg, Illinois, contact Robert M. Kaplan, P.C., today. Our team is here to guide you through the process and help ensure your financial future is protected.