Cryptocurrency Difficult to Find, Value During Divorce

 Posted on September 25,2019 in High Asset Divorce

Marital assets in a divorce can be intangible properties that hold great value, particularly in a high-asset divorce. Cryptocurrencies, such as Bitcoin, are a modern example of an intangible financial asset. Most divorces do not have cryptocurrencies because owners typically must have a combination of technological savvy and individual wealth. The value of one Bitcoin has hovered around $10,000 for the past few months. Owning cryptocurrency can make the division of property more complicated. You may need to hire a financial professional with knowledge of cryptocurrency and how it applies to divorce laws.

Hidden Asset

Cryptocurrencies are a decentralized and unregulated form of digital currency that originated in the past decade. The lack of a central bank or government oversight creates the risk that a divorcee could hide part of their assets by:

• Using them to purchase cryptocurrency; and
• Hiding the cryptocurrency in hard-to-find accounts.

You can trace most cryptocurrency transactions through digital records, but doing so may require a forensic accountant with experience investigating digital transactions. A divorcee may be able to cover their tracks by conducting transactions in person and erasing the digital evidence. Finding cryptocurrency during a divorce may continue to be a problem until there are greater regulations on the market.

Valuing Cryptocurrency

The value of cryptocurrency is highly volatile, making it difficult to determine how it should be valued during the division of property. In the past six months, a Bitcoin has been worth as much as $12,500 and as little as $4,000. The value of the cryptocurrency when you finish your divorce agreement could change by thousands of dollars by the time that you transfer the cryptocurrency. The most sensible way to divide cryptocurrency is by giving each spouse a percentage of the cryptocurrency and setting its value when the transaction occurs. There are several ways that the transaction can work if you are the spouse receiving the cryptocurrency:

• You can have the cryptocurrency transferred to you and keep it in that form as an investment;
• You can immediately liquidate the cryptocurrency after it is transferred to you; or
• Your spouse can liquidate some of their cryptocurrency and give that money to you.

Contact a Kane County Divorce Lawyer

You most likely will not have to worry about cryptocurrency during your divorce. According to a 2018 survey, only five percent of the people in the U.S. own cryptocurrency. However, most divorces involve varied and complicated properties that spouses must divide. A St. Charles, Illinois, divorce attorney at Goostree Law Group will identify and value your marital properties in advance of your divorce negotiations. Schedule a free consultation by calling 630-584-4800.

Source:

https://www.bankrate.com/personal-finance/divorce-cases-cryptocurrency-assets-new-battleground-bitcoin/