When couples divorce in Indiana, the court uses the equitable division standard to split marital property. For those who have significant assets in new investments such as bitcoin and other forms of cryptocurrency, property division can become complex since most states have not yet developed laws about how to value and fairly share these assets.
Learn more about the factors in play when it comes to dividing cryptocurrency holdings with a former spouse in Indiana.
The difficulty with disclosure
Individuals who own cryptocurrency must disclose these investments when documenting other financial assets during divorce proceedings. Failure to disclose these or other investment accounts will constitute hiding assets in the eyes of the court.
On the other hand, those who suspect a spouse of hiding bitcoin may want to consult a professional with knowledge of financial forensics. The lack of standards in cryptocurrency means it can be difficult for an inexperienced individual to find these accounts.
Challenges in valuation
Cryptocurrency poses significant complications when it comes to valuing this assets for the purposes of property division. For example, no standard for determining fair market value of this currency exists. Owners simply must provide their estimates in good faith.
In addition, the value of these forms of currency fluctuates, which means the value may substantially change before the couple finalizes a divorce agreement. When this occurs, the settlement amount may either increase or decrease, potentially extending the proceedings.
Indiana state law
Like other states, Indiana has not yet weighed in on how judges should divide cryptocurrency in divorce. However, the court will treat these assets just as they do traditional property. The state’s equitable division standard means that each person must receive a fair, but not necessarily equal, share of property.
Several factors contribute to fair division in each case. These include the reason for the divorce including each party’s conduct, as well as each person’s financial status, earning capacity and contribution to marital property.