If you do not personally invest in cryptocurrency, perhaps at this point there are friends, family members, or colleagues who have. Cryptocurrencies are rising from a niche market that has become almost completely mainstream, and they have been doing this in a very short time. Now that they are everywhere, there is a new question to contend with, and that is why cryptocurrencies are managed in the divorce process.
Determining and distributing financial finances, as well as determining allowance payments, are important issues that need to be addressed during most divorce processes. There are many uses of a lawyer for disclosing financial assets, even if you combine Bitcoin and divorce, you are left with a new one.
The management of Bitcoin and divorce is different from the management of other financial assets for a number of reasons. One is the magnitude of the injury to their value. Bitcoin and other cryptocurrencies are known to have gone through a complete wild swing, both up and down, in value. Therefore, the value of anyone should continue to be tracked and updated on the fly, or set at a specific time, when it will end up being the value of something different on the line. In any case, it is less than ideal for determining and distributing assets or setting alimony.
Another key issue to understand between cryptocurrency and divorce is that these markets and their transactions are designed to be equally anonymous and secure. Looking at an individual’s holdings, accounts, or transactions is not the same as looking at a bank account, retirement account, or stock portfolio. Tracking a person’s crypto accounts is very difficult, and whether or not the courts have imposed any subpoena power remains unclear at this time.
Clearly this is just the beginning of the issue of Bitcoin and divorce, as all cryptocurrencies continue to rise. As more people start or continue to use it, and they become more and more accepted, how they are managed as financial assets during the divorce processes will continue to be in the spotlight. It is a fact that they stand up as quickly as possible to start with that leaving a lot of people today to watch how they treat such things. Remember, Bitcoin was launched less than a decade ago.
As always, be sure to consult with an experienced professional in your area. While there is still uncertainty about how to treat Bitcoin and divorce, and what types of judgments will await us in the future, a knowledgeable divorce lawyer will guide you through the process, and give you some insight into finding finance and all aspects of a pending case.