Beyond Cryptocurrency: A Family Law Primer on NFTs and Other Digital Assets. The program will inform family law attorneys about this emerging and expanding class of assets, and how it affects their practice. Panelists will discuss the nature of NFTs and other digital assets; their impact on property, support, attorneys fees, and fiduciary duties; and the unique challenges they present for discovery, valuation, and division.
• What are NFTs and why should we care about them
• How are they acquired, held, and controlled
• Fiduciary duties
• How can the court protect NFTs
• How are NFTs discovered, valued, and divided
• Income
• Tax implications
• Caselaw
Speakers:
Ariel Leichter-Maroko, Founding Partner, Leichter Leichter-Maroko LLP
Mike Dudas, VP Business Development, Paxos, a Regulated Blockchain and Crypto Infrastructure Platform
Category: Family Law
Program Materials:
What is an NFT?
• NFT = Non-Fungible Token
• Essentially a digital ownership certificate for an asset
• Key features:
• Smart contracts enable issuance, transfer and buying/selling
• Token standards define behavior (often ERC-721)
• Stored either directly on a blockchain (often Ethereum) or on a decentralized storage system (often IPFS)
• Not fungible (i.e., unique; not interchangeable)
• Unlike many cryptocurrencies such as Bitcoin or Ethereum, which are fungible, like a US dollar is
Examples of NFTs
How to interact with NFTs
NFT Use Cases
Popular Types of NFTs
How are NFTs purchased / acquired
Where are NFTs purchased
Where are NFTs held and accessed
Where is an NFT “located”
NFT contracts: the devil is in the details
Who has control over an NFT
Fiduciary Duties & Management and Control
Property protection orders
Finding NFTs – Formal Discovery
Finding NFTs – Forensics
Valuation
Can an NFT be divided in kind?
Fractionalized NFT’s (F-NFT)
What is a blockchain?
• A distributed ledger
• Runs simultaneously on many computers
• Allows for decentralized confirmation of data status and transactions
• Uses cryptography to secure transactions
• Transactions are signed with public and private keys
• NFTs are one type of asset distributed and secured by blockchains
Smart contracts & NFTs
Income from Digital Assets
• Investment/trading gains
• Minting fees (e.g., those received by Eulerbeats Originals owners)
• Sale proceeds and ongoing royalties/commissions for NFT
artists/creators
• Fees for platform owners/investors
• DeFi fees (e.g. Uniswap)
• Staking fees
Apportionment based on spousal efforts
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DISCLAIMER: Speakers’ positions are not necessarily those of BHBA. The information in this video is not a legal advice, not a legal counsel, and may not be relevant in various territories and/or jurisdictions. As the laws change often, the information in this video may not be relevant at some point of time. No attorney-client relationship is formed by use of this video. The information in this video is for general purposes only.
Music:
Image by A M Hasan Nasim from Pixabay: