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How does cryptocurrency factor into divorce?

On Behalf of | Jan 5, 2022 | Divorce |

Divorce gets trickier the more types of marital property you have, but it gets even more complicated when you have to deal with digital assets.

For over 10 years now, cryptocurrency has made an interesting splash in the divorce space as a way of digitally securing investments. According to CNBC, more than 20 million Americans may have some amount of cryptocurrency, and due to their unique encryptions, such assets are difficult to trace. This makes it easy to forgo disclosing cryptocurrency investments during property division.

What is cryptocurrency anyway?

Think of it like digitally-secured cash that is worth as much as the market believes it is worth. This makes it a tempting investment if you think the crypto market might boom. Like any asset, Florida courts look to distribute it as equitably as possible.

How do you divide it?

Cryptocurrency investors store these assets on crypto wallet apps. If you and your spouse want to divide it evenly, it is about as simple as splitting a pile of cash down the middle — provided you both have your own crypto wallets and have the ability to transfer the appropriate amount. If you or your spouse wish to keep the entire account, then there may be other marital property to give to the other party in exchange.

What if your spouse hides it?

Cryptocurrency has proven difficult to track down, and forensic accounts charge a lot of money to dig up proof of hidden crypto assets. But those assets may also be worth looking for. Failing to report cryptocurrency as marital property is still perjury.

No matter what your choice, there are resources for you to lean on when it comes to dividing cryptocurrency in a divorce.