THE IMPACT OF DIVORCE ON DIGITAL ASSETS IN NIGERIA: LEGAL CHALLENGES AND EMERGING FRAMEWORKS

Abstract

The rapid rise of digital assets such as cryptocurrencies, digital accounts, nonfungible and online intellectual property has created new challenges for divorce
law. Traditional legal frameworks like Matrimonial Causes Act 1970, were
designed for tangible property and standard financial assets, and they do not
specifically address digital wealth. As a result, courts and lawyers face difficulties
in identifying valuing and fairly dividing these assets which are often intangible,
volatile and easy to conceal. This article explores these challenges, focusing on
issues of ownership, valuation, jurisdiction and enforcement. It looks at how other
countries including United States of America and United Kingdom are approaching
digital assets in divorce, highlighting practices such as statutory recognition,
mandatory disclosure and expert valuation. In Nigeria, courts rely largely on
discretion due to gaps in legislation, which can lead to inconsistent outcomes. The
study proposes a framework to integrate digital assets into divorce proceeding more
effectively aiming to improve fairness, transparency and predictability. By
connecting the realities of digital wealth with established legal principles, the
article provides guidance for reform in Nigeria and other jurisdictions facing
similar challenges.