What Happens with My Cryptocurrency if I Get Divorced in Illinois?

 Posted on September 17,2024 in Division of Property

With cryptocurrency becoming more popular, it is increasingly included in divorce proceedings. Since it is a relatively new asset category, it can raise interesting questions about equitable asset division in an Illinois divorce. If you or your spouse own cryptocurrency, speak with a qualified Kane County, IL divorce lawyer to understand how it could be divided in divorce.

Determining the Value of Cryptocurrency

The state of Illinois differentiates between marital property and separate property. Any savings, investments, property, and other assets you had when you entered the marriage are generally considered exclusively yours. On the other hand, anything either of you acquired during your marriage is generally defined as marital property and subject to an equitable division during divorce.

Cryptocurrency is no exception. Even if you are the only one who researched and invested in it, whatever cryptocurrency you obtained during your marriage will likely be split with your soon-to-be ex.

However, it can be difficult to determine its exact value for several reasons, including:

• Volatility: Cryptocurrency values fluctuate significantly over short periods, making it hard to determine exactly how much it is worth during divorce proceedings that take months to finalize.
• Market dynamics: Cryptocurrency prices can vary across trading platforms, leading to confusion about the true value of the assets.
• Lack of regulation: The cryptocurrency market is less regulated than the traditional financial market, causing inconsistent reporting and valuation.
• Complexity: You need specialized knowledge to understand the technology behind cryptocurrency so you can value it accurately.
• Liquidity issues: You cannot easily trade all cryptocurrencies. If yours has low liquidity, it can be hard to sell them at their current market value without affecting the price.

When a couple divides cryptocurrency in a divorce, they need to decide when and how it will be valued. An agreed-upon valuation method and date can help with some of the confusion involved in determining the value, which is important for ensuring an equitable division.

Schedule a Free Consultation with a St. Charles, IL Asset Division Lawyer

If you own cryptocurrency and have questions about how it will be divided in a divorce, a knowledgeable Kane County, IL divorce attorney can help. Before deciding how it will be divided, you must determine what it is worth, which can be difficult because of the unique nature of cryptocurrency. At Goostree Law Group, we are dedicated to helping our clients overcome challenges to reach a fair settlement. Call us at 630-584-4800 so we can get started.