The division of assets can be one of the most hotly contested issues in a divorce. With the new types of currencies being created in the financial industry, a growing number of divorcing couples are also having to address how to handle any cryptocurrency holdings they may have.
One of the main issues with addressing cryptocurrency assets in a divorce is that many family law establishments do not have the necessary understanding of or experience with cryptocurrencies. This means that divorces in which cryptocurrencies assets have to be addressed can be much more complicated and time-consuming; cryptocurrencies can also be difficult to appraise because prices constantly fluctuate, and they can be easily hidden.
Trying to locate cryptocurrencies that have not been disclosed can be an expensive and lengthy process. However, it is not impossible, especially if the cryptocurrencies were bought using online exchanges. While targeting cryptocurrencies bought via an online exchange can be an uncomplicated process, traces of cryptocurrencies that were bought directly and moved offline can be lost forever.
Spouses who hide assets from another spouse during a divorce can suffer penalties if they are caught. For example, the other spouse may be awarded a more significant share of the assets. In egregious cases, the spouse who hid the assets may be sent to jail for being in contempt of court for not fully disclosing all assets.
A divorce attorney may work to protect the rights and interests of divorcing clients during disputes regarding the division of assets, including complicated assets such as cryptocurrencies. The attorney may conduct independent investigations to locate assets that may be hidden by the other party. Financial professionals with specialized experience might be consulted to have hard-to-valuate assets valuated properly. Litigation and negotiation may be used to obtain favorable settlement terms regarding how the assets are to be divided.
