One of the reasons divorce can be a challenging process for couples is that it involves separating the couple’s assets. Every asset that the couple has acquired throughout the marriage must be equally distributed. This includes properties, business real estate, jewelry, and even cryptocurrency. Over the past years, cryptocurrency has become more than just a trend; many couples have considered cryptocurrency as a form of investment. However, like all investments and assets in a divorce, cryptocurrency must be distributed equally as well in a divorce. A family law attorney can answer all of your questions about cryptocurrency and divorce.

Cryptocurrency And Divorce

In the divorce process, cryptocurrency is treated like any marital asset. Like any marital asset, whether cryptocurrency is separate or marital property must be determined. Cryptocurrency may be considered a marital asset based upon whether the couple experienced any growth in cryptocurrency during the marriage. Another factor that can help classify cryptocurrency as a marital asset is whether both partners were involved in using cryptocurrency or invested in a couple of cryptocurrency assets.

How Can Cryptocurrency be Divided in a Divorce Settlement?

Cryptocurrency investments are no different than other marital assets when considering property division. Similar to other assets, cryptocurrency can be distributed in different ways. The investments can be liquidated, and both spouses or one spouse can receive the money value. One spouse may decide to exchange their cryptocurrency investments for a larger share of another type of marital property.

When is Cryptocurrency Classified as a Separate Property?

Cryptocurrency could be classified as separate property if one or both spouses entered the marriage with cryptocurrency. If one spouse gifted another spouse with a form of cryptocurrency, the cryptocurrency could also be considered separate property.

How Does The Price of Cryptocurrency Complicate Divorce Proceedings?

Because the price of cryptocurrency fluctuates consistently, it can be challenging to pinpoint a specific amount when dividing the assets during a divorce proceeding. When the divorce is filed, the cryptocurrency amount may not be the same once the divorce is finalized. Some spouses skip the valuation process altogether and divide the cryptocurrency equally.

How Many Spouses Hide Cryptocurrency During The Divorce Process?

Like any other marital asset, some spouses attempt to hide their cryptocurrency investments from their spouses during the division of assets. This typically happens when one spouse is involved in cryptocurrency, and the other spouse is unaware and has little knowledge about cryptocurrency. Because cryptocurrency is still a relatively new investment, some spouses wish to keep this asset out of the asset division process during a divorce. Family law attorneys have begun asking about cryptocurrency during the asset division process.

Contact a Manhattan Property Division Attorney Today

If you are going through a divorce and are concerned about the equitable distribution of your property, turn to the team of Randi L. Karmel, PLLC for help. Contact us for a consultation to discuss your unique matrimonial or family law matters, call us at 212-755-0224.