As cryptocurrency’s popularity rises, more people will need to think about how to divide theirs in the event of divorce. If you and your spouse share these assets, splitting them may be difficult, since their value tends to fluctuate. Furthermore, you may suspect your spouse of hiding cryptocurrency holdings from you. And finding these takes serious legwork. Yet, in both cases, accounting for these assets is crucial in achieving an equitable divorce settlement.
In dividing your shared cryptocurrency, you and your spouse will need to determine its fair market value. Yet, the value of cryptocurrency is volatile. And it could appreciate or depreciate many times during your divorce proceedings – or soon thereafter. With this fluctuation in mind, you may find it easiest to split your cryptocurrency – following Indiana’s equitable distribution laws – in their digital form. If your spouse managed your digital wallet, though, you might need to set up your own to receive your share. This process can be confusing if you are unfamiliar with how cryptocurrency works. As an alternative, you can liquidate your shared cryptocurrency assets through a custodian. In doing so, you and your spouse will receive the equivalent value of your assets in U.S. dollars.
If you and your spouse own cryptocurrency assets together, you will likely have little trouble accessing them. Yet, your spouse may have cryptocurrency holdings that they concealed from you. Finding these assets can be challenging, and you will want to work with your attorney and a forensic accountant to locate them. During the process, you will need to consider any comments your spouse has made about cryptocurrency holdings. You will also want to evaluate bank or credit card transactions that could point to their existence. By piecing together these details, among others, you and your team can determine whether your spouse is hiding a digital wallet. If they are, they may face consequences that could impact your settlement.
Cryptocurrency’s newness and digital footprint makes it tough to divide during divorce. Yet, by knowing how to find, access and divide these assets, you can work toward ensuring you receive a share that reflects your needs.