Dividing assets during a divorce can be stressful and difficult. The situation can be more complex when one spouse has assets that can be difficult to account for or challenging to understand.
While it can make for exciting headlines, people who have a good understanding of cryptocurrency tend to be rare. Still, if your spouse has cryptocurrency, it can be a complicated asset to divide during a divorce.
Here’s what you should know about the impact cryptocurrency could have on your divorce.
What is cryptocurrency?
In some cases, spouses may know about cryptocurrency accounts but not feel knowledgeable enough to advocate for their share regarding asset division. Very simply, cryptocurrency is a type of decentralized currency (or money).
Unlike the other currencies, like the dollar, cryptocurrencies are not owned by a government and can fluctuate rapidly. Also, since cryptocurrencies are not tied to the stock exchange, they can change considerably outside of typical trading hours.
It is also important to note that, while Bitcoin is a cryptocurrency that makes the headlines, there are many others.
In some cases, a spouse will keep cryptocurrency in an attempt to shield assets. Remember, cryptocurrency is just like any other asset in a divorce. If the account is subject to asset division, the fact that it is cryptocurrency does not change that.
It can be challenging to advocate for your share of a cryptocurrency account if you are not familiar with it. Keep in mind that if you do not currently have cryptocurrency, you can have it exchanged into dollars (similar to how you would exchange money after a trip to another country).
It can be challenging to advocate for something you do not know a lot about. It is essential to talk to a knowledgeable professional about cryptocurrency and how it could impact your divorce.