The role of cryptocurrency in divorce cases

On Behalf of | Mar 19, 2019 | High Asset Divorce

It isn’t uncommon for couples who are getting divorced to have disputes over money. However, Texas residents may complicate matters when the money takes the form of Bitcoin or other digital currencies. According to a 2018 survey from the Global Blockchain Business Council, only 5 percent of respondents said that they currently owned virtual currency. However, another 21 percent were considering such an investment in the future.

Therefore, the question of what to do with digital currency in a divorce may become more common in the future. In some cases, lawyers are asking that individuals list their holdings as part of their net worth statements. It is possible that courts will ask individuals to do the same at some point going forward. Since cryptocurrency is a relatively unknown asset, some may think that it is possible to hide their holdings.

Individuals may also think that it is a good idea to convert dollars or other assets into digital currency. This may be relatively easy if transactions take place offline or through individual sellers or brokers. However, if the transaction takes place through an online exchange, it might be harder to hide from someone who knows how to evaluate a financial statement. Those who understand the issue of hiding assets say digital currency could become a preferred tool to do so in the future.

The asset division process may become contentious even if the divorce is otherwise amicable. An attorney could help an individual better understand their financial situation and what they may be entitled to in a divorce settlement. Other financial professionals might be able to help find assets such as cryptocurrency that an ex is attempting to hide.