How cryptocurrency is complicating the divorce process

If you do not personally invest in cryptocurrency, you probably have friends, family or colleagues at this time. Cryptocurrencies have evolved from a very niche market to almost the mainstream, and they have done so in a very short time. Now that they are so ubiquitous, there is a new question to argue with, and that is how cryptocurrencies are handled in the divorce process.

Determining and distributing financial resources, as well as determining alimony, are central issues to be resolved during the majority divorce process. There are many tools at the disposal of an attorney for disclosing financial assets, but when you combine bitcoin and divorce, you have something completely new left.

Managing bitcoin and divorce is different from managing other financial assets for a variety of huge reasons. One is the sheer volatility of their value. Bitcoin and other cryptocurrencies have been known to go through wild changes, both above and below the price. Therefore, the value must either continue to be tracked and updated on the fly, or set at a specific time, when it may be something very different down the line. In both instances, this is less than the ideal situation for asset allocation and distribution or allowance determination.

Another important problem to understand between cryptocurrency and divorce is that these markets and their transactions were designed to be both anonymous and secure. Looking for a person’s holding, account or transaction is not like looking at a bank account, retirement account or stock portfolio. One person’s crypto accounts will be the hardest to find, and it remains unclear at this time whether the courts have any subpona power behind it.

Apparently this is just the beginning of the Bitcoin and divorce issue, as all cryptocurrencies are still on the rise. As more people start or continue to use them, and they become more common and accepted, the spotlight will be on how they are managed as a financial asset during the divorce process. This is because they have come up so early that many people today have been warned about how to deal with such issues. Remember, Bitcoin was launched less than a decade ago.

As always, be sure to consult an experienced professional in your local area. There is still a lot of uncertainty about how to deal with Bitcoin and divorce and what kind of judgment awaits us in the future, an experienced divorce attorney will be able to guide you through the process and give you insights into financial discovery and all aspects of a pending case.