Are you familiar with the idea of “cryptocurrency”? Much as the name suggests, cryptocurrency is a type of currency that is digital – and encrypted – in nature. In addition, it is stored and transmitted entirely online. As a result, encryption is often used to help keep these funds secure against leaks or other cybersecurity breaches. Bitcoin is perhaps the most well-known example of this kind of currency, but it is not the only option available. Let’s take a look at how cryptocurrency could impact your divorce.
Because cryptocurrency can be spent and received in peer-to-peer environments that are not regulated by the government, it is particularly popular among individuals who would prefer to keep their purchases and income private. This naturally gives rise to the question of what exactly happens with cryptocurrency in the divorce process. Are these assets considered as part of judgements?
The answer, of course, is a bit complicated. Because cryptocurrency is still relatively new to the vast majority of society, the rules and regulations surrounding it are still being formed. In general, however, cryptocurrency might be subject to the division of property process just like any other assets. If you attained the currency while married, in other words, then it might well be treated like all other marital assets and the rules and regulations that apply to property division in general could be applied to your cryptocurrency assets.
One thing that has become increasingly common over the years is the attempt to hide assets via cryptocurrency. It is difficult to track and value this kind of currency, which leads to a lot of confusion and obfuscation in court regarding the amount of the assets in question as well as their overall value. That means that it is a currency option that could potentially be easily undervalued and could also potentially be used to help liquidate cash assets into more easily hidden accounts. Indeed, the question of how cryptocurrency could be used in the divorce process is one that is causing no small amount of concern amongst lawyers and cryptocurrency specialists alike.
We Can Help
At Birmingham Men’s Law Firm, we understand the confusion and concern surrounding cryptocurrency. We have experience handling this issue and are more than happy to work with you to ensure that you receive your fair share in divorce proceedings. If you have questions or concerns in this area, reach out to our skilled staff today for more information!