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How would cryptocurrency divide in a divorce?

On Behalf of | Dec 24, 2022 | Divorce, DIVORCE - Divorce, Family Law

Cryptocurrency is rather volatile. Its value can ebb and flow depending on a variety of factors. But for many people, it makes up a portion of their finances.

If you have cryptocurrency, then you will need to factor that into your divorce settlement. There are a couple of considerations to make when determining how to divide this asset.

The top factor

The main factor that will play into dividing cryptocurrency is the value. Unfortunately, the value can fluctuate greatly from day to day. The value is much different than other currency that stays fairly stable. It is more like a stock or other investment, but even then, it is much more unstable. So, nailing down the value can be tough. You will need to figure out a formula to use to determine the final value that is fair for everyone.

Other considerations

You also have to account for taxes. As with anything, crypto will have taxes on it. You must factor this into figuring the value.

Another thing to think about is transferring it to the other person. It does not work the same as cash or even stocks. It can complicate the process.

Cryptocurrency can be quite valuable, but the division process is complicated. You may decide there is an easier option, such as trading other assets for the crypto. But keep in mind, this is an asset and should be part of your property division agreement. Do not ignore it or allow your spouse to avoid including it in your asset list. That would cheat you out of money that you rightfully own under state law.