Dividing Cryptocurrency Assets When a Marriage Ends
The divorce asset division process can be complicated when cryptocurrencies like Bitcoin, Ethereum are involved. And in Florida, as in many parts of the world, the rise of cryptocurrencies means more people hold these assets.
There are professionals who can help you with the complexities of dividing cryptocurrency when a marriage ends, discuss your situation and long-term objectives with a West Palm Beach family attorney. An experienced Florida divorce lawyer knows how to treat cryptocurrencies, from disclosure and valuation to equitable distribution.
Cryptocurrency Disclosure and Valuation
Digital and virtual currencies, cryptocurrencies use cryptography for security. They are used around the globe, both as an investment and as a form of transaction. As a result, cryptocurrencies are part of many marital estates, raising questions about how to fairly divide these assets during a divorce.
The first step in dealing with cryptocurrency assets is disclosure, each spouse must fully disclose their holdings. Sometimes this is simple, but in other cases it is challenging because cryptocurrencies are known for their private nature, making it possible for one spouse to attempt to hide assets. If you believe digital assets are being hidden, an attorney can work to bring those assets to light, ensuring fair disclosure.
Once all assets are accounted for, they need to go through a valuation process. Cryptocurrency values can fluctuate significantly, so determining the value of cryptocurrencies at the time of separation or divorce filing is crucial for an equitable division of assets. A financial expert may be required. There are professionals who know how to leverage blockchain technology to trace and value assets accurately.
Equitable Distribution in Florida
Florida follows the principle of equitable distribution when it comes to dividing marital assets during a divorce. Because of this, assets need to be distributed fairly, but that does necessarily mean they will be divided equally. When dealing with cryptocurrency assets, equitable distribution will take the following factors into account.
- Date of acquisition. When were the cryptocurrencies acquired? Were they purchased before or during the marriage?
- Source of funds. Were the cryptocurrencies bought with marital funds, separate funds, or a combination of both?
- Did one spouse actively trade or invest in cryptocurrencies while the other did not?
- Future potential. Is there the potential for future growth of the cryptocurrency assets?
To ensure a fair and legally sound division of cryptocurrency assets, it’s essential to work with a knowledgeable Florida divorce attorney who has experience in handling cases involving cryptocurrencies. After a West Palm Beach family attorney has compassionately listened to your concerns they will begin the process of evaluating the cryptocurrency holdings. In cases of non-disclosure or hidden assets, your attorney can employ forensic methods to trace hidden cryptocurrencies.
What types of cryptocurrency do you or your spouse own? Divorce can be difficult for a range of reasons, and when cryptocurrency assets are involved, the complexities can multiply. Discuss your situation with the legal team at Bruce S. Rosenwater & Associates so that you can protect your financial interests and move into a new chapter of life with confidence. Schedule your free initial consultation today.
