Is Your Ex-Spouse Entitled To Half Of Your Cryptocurrency?
The family law courts of Florida require couples to divide all of their marital property equitably, which means fairly but maybe or maybe not equally. Most of the time, couples agree on the details of the equitable distribution of their marital property during mediation, but if they cannot agree, then the judge decides at the end of the trial which spouse is entitled to which marital assets. Dividing assets that fluctuate in value is more complicated than simply dividing the money in a joint savings account, but the court is experienced in these matters. For example, if one spouse owned a house before the marriage, and the other spouse moved in after the wedding, then only the amount of appreciation of the house’s value is marital property, so one spouse usually writes the other spouse a check for a portion of the increase in value. Equitable distribution of cryptocurrencies is a new challenge, not only because cryptocurrencies and the laws regulating them are new, but also because they are designed to make themselves invisible to people who aren’t supposed to know about them, like public sector employees and gold-digging ex-spouses. A Boca Raton divorce lawyer can help you keep your fair share of your Bitcoin stash while staying on the right side of the law.
Transferring Cryptocurrency as Part of a Divorce Settlement
How difficult the process of transferring a portion of the marital cryptocurrency assets from one spouse to the other will be depends on which cryptocurrency exchange you are using. It may just be a matter of contacting the cryptocurrency exchange’s customer service department, but in some cases, you might need to enlist the help of a cryptocurrency expert.
Dealing With the Fluctuating Value of Cryptocurrency
It is possible that, over the course of a protracted divorce case, the marital cryptocurrency assets could change substantially in value. If you anticipate that the crypto assets will lose value, you could specify in the divorce petition that, if the crypto depreciation exceeds a certain amount, you request the addition of a different marital asset to your portion of the marital property.
An unexpected consequence of dividing crypto assets in a divorce is that you will need to go on record stating how much your cryptocurrency was worth before current cryptocurrency tax laws came into effect. Therefore, you may need to pay taxes in coming years on cryptocurrency appreciation that the IRS previously had no way of finding out about.
What If One Spouse Conceals Cryptocurrency Assets From the Other?
Equitable division of cryptocurrency is a manageable task when both spouses are honest about their crypto possessions, but when one spouse conceals cryptocurrency, or any other type of asset, from the other spouse, things get more complicated. Your spouse might claim not to own any cryptocurrency, but your tax returns, bank statements, and loan applications might say otherwise. Your divorce lawyer can help you discover crypto digital wallets that your spouse is trying to hide from you.
Contact Schwartz | White About Equitable Distribution of Digital Assets
A South Florida family law attorney can help you find out about your spouse’s cryptocurrency accounts and get the court to award you your fair share of their value. Contact Schwartz | White in Boca Raton, Florida about your case.