14/04/2023 0 Comments
Hiding Assets and Income in Cryptocurrency During Divorce
Division of Assets When a Relationship Comes to an End
The division of family property is an emotionally charged and complex issue for couples looking at divorce. In today's world, these questions can be even more complicated due to the emergence of new types of assets, such as cryptocurrency.
What Is Cryptocurrency?
Cryptocurrency is a digital currency, that is decentralized, which means it is not controlled by a centralized authority, like the government or a particular financial institution. Rather cryptocurrency uses blockchain, which is a decentralized data technology, very similar to an online ledger that helps manage and record transactions. Cryptocurrency offers a new way to store and exchange value, with the capability to provide more privacy and security than traditional forms of currency, which in itself poses its own issues.
Valuation of Cryptocurrency
Cryptocurrencies are known for their volatility, and their values can fluctuate widely and rapidly, which makes it challenging to determine their fair market value. Understanding the cryptocurrency’s historical price trends, market capitalization, and other relevant factors can help you make an informed decision, and better understand what you are entitled to. In the context of divorce, the valuation of cryptocurrency is a critical step in determining its fair and equitable distribution between spouses.
What Should You Do If You Believe Your Spouse Is Hiding Assets/Income in Cryptocurrency?
The first step is establishing that the cryptocurrency exists, as that allows your lawyer to get confirmation on your behalf, in the form of disclosure and discuss the next steps with you. During a divorce, couples should be aware that the same rules apply to cryptocurrencies under the Family Property Act, and they are treated similarly to stocks or other taxable investments. It’s important to remember that all debts and assets, whether owned personally or jointly, are legally required to be shared and equalized. While money held in bank accounts or traditional assets like stocks usually doesn't pose any problems, dividing cryptocurrencies can be more complex.
If your spouse is an avid “Crypto” enthusiast and heavily invested in cryptocurrencies, it's crucial to work with a lawyer who is knowledgeable about these assets to ensure a fair and equitable distribution. Cryptocurrency can impact divorce through spousal support, child support, and your final property settlement. If you require assistance with this issue, please feel free to contact our office and arrange to speak with one of our experienced lawyers.
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