You can’t read the news for more than a few stories without running into terms like Bitcoin, Ethereum, and Dogecoin. Cryptocurrency has gained enormous popularity in recent years, and despite some recent lulls, it’s probably here to stay.
If you and your ex-spouse possess cryptocurrencies separately or jointly, you might be curious about how they are handled in divorce proceedings. With the assistance of a skilled Birmingham divorce lawyer, you can determine what potential impact cryptocurrencies may have on your divorce. New sorts of assets constantly create new issues.
Taking a look at cryptocurrency from a legal perspective
Similar to any antiques, real estate, or other possessions you may own, cryptocurrencies are considered assets under the law. Whether an asset is regarded as a marital or separate asset largely relies on when it was obtained—before or during the marriage—and whether it increased during the marriage. Due to Alabama’s usage of an equitable distribution approach, you may anticipate that cryptocurrencies will be distributed in a way deemed fair, as opposed to being evenly split.
The division of cryptocurrency in divorce
The cryptocurrency market is highly volatile. Different currencies can be challenging to determine a currency’s fair market value. Once the divorce is finalized, it is implausible that an item will remain the same.
The coin must also be divided in the manner you choose. They might prefer to preserve their share in its current shape if both parties are involved in the bitcoin market. In each party’s cryptocurrency wallet, they can simply divide them as agreed.
The other party might desire their share in traditional currency if only one side is interested in cryptocurrencies. Your lawyer may explain the valuation procedure to you and help you determine how much your share will likely be worth after your divorce.
The individual who doesn’t want the bitcoin may decide to give it to the other person in exchange for something else if they don’t want the cryptocurrency themselves.
What are the legal implications of your spouse hiding assets with cryptocurrency?
Utilizing cryptocurrencies to conceal assets is one of the most significant potential problems. Your spouse might not realize they have a substantial investment in bitcoin if you are unfamiliar with the currency.
If one of the spouses is interested in cryptocurrencies, they can inform their attorney. Their lawyer can watch for their ex-spouse to list bitcoin holdings in their statement of assets and liabilities. If not, it might be necessary to delve a little bit deeper.