If you have not invested in cryptocurrency personally, you probably have friends, family or colleagues at the moment. Cryptocurrencies have risen from a highly niche market almost entirely to the mainstream, and they did so in a very short time. Now that they are everywhere, there is a new question to be debated, and how to manage cryptocurrencies in the divorce process.
Determining and distributing financial debts, as well as determining alimony payments, are key issues that need to be addressed in most divorce proceedings. There are many tools at the disposal of a lawyer to disclose financial assets, but when you combine a divorce with Bitcoin, something completely new remains.
Working with Bitcoin and divorce is different from other financial assets for many big reasons. One is the very variability of their value. Bitcoin and other cryptocurrencies are known to undergo completely upward and downward fluctuations in value. Therefore, the value must either continue to be tracked and updated immediately, or it must be determined at a time when it may be worth something different. In either case, it is less than ideal for assigning and distributing assets or assigning alimony.
Another key understanding between cryptocurrency and divorce is that these markets and transactions are designed to be both anonymous and secure. Looking at an individual’s owners, accounts, or transactions is not the same as looking at a bank account, pension account, or fund portfolio. It will be difficult at best to track a person’s crypto accounts, and it will not be difficult to see if the courts have the power of any summons to date.
Obviously, this is just the beginning of the Bitcoin and divorce issues, as all cryptocurrencies are still rising. As more people begin to use or continue to use them, and as they become more widespread and accepted, they will continue to be the focus of attention as they act as financial assets during the divorce process. To begin with, their rapid rise has made many people today wonder how they would be treated in such matters. Remember that Bitcoin started less than a decade ago.
As always, be sure to consult an experienced professional in your area. While there is still a lot of uncertainty about how Bitcoin and divorce will be handled and what kind of decisions we can expect in the future, an experienced divorce lawyer can guide you through this process and make financial discoveries and so on. all aspects of the case under consideration.