Dealing with Cryptocurrency During a Divorce
A Florida couple can expect that their assets will be divided during a divorce. The guideline in Florida is a fair and equitable division, unlike other states where
community property means everything is divided in half to distribute to each spouse.
In our changing technological world, a question needs to be addressed – what is an asset?
Homes, property, cars, bank accounts, savings – all are considered assets. A value can be assigned to them to divide them during a divorce. But these days, there is a new asset, considered by some to be as valuable as dollars and cents.
Your family law specialist in the Emerald Coast, Crystal Collins Spencer, will explain marital assets during an initial consultation.
What is Cryptocurrency?
Cryptocurrency is a digital asset tied to a blockchain network designed to work as a medium of exchange. It is not linked to any central authority such as a bank or government. Instead, it is governed by computer code. Its value is based on demand.
Cryptocurrencies are volatile investments with varying worth.
According to Forbes, there are 19,000 different cryptocurrencies, and some are invested and growing in value. Bitcoin is the best-known cryptocurrency, along with Ethereum.
Cryptocurrency is treated like any other asset in a Florida divorce and is subject to equitable distribution. Even if just one person owned it before the marriage, if its value grew during the marriage, it could be considered a marital asset.
During a divorce, each party must disclose assets. In the case of crypto, the asset will have to be valued to determine its true worth, or one party may release their crypto holdings in exchange for other marital property. Any outstanding IRS tax obligation may be negotiated during the divorce.
Crypto Asset Hiding
Hiding assets during a divorce can bring a fraud, criminal, civil contempt of court, or a perjury charge if they lie to the court. Some people try to do it anyway.
Unfortunately, cryptocurrency is becoming a way for one spouse to hide assets from the other. These can be high-value assets, and the other spouse may not understand their value.
In a divorce, a forensic expert can look for signs of a cryptocurrency purchase, such as login credentials, digital wallets, and bank or credit card statements. There may be a cryptocurrency listing on a loan application.
If crypto is from foreign exchange, it can be more challenging to track. A subpoena from a U.S. court may not be recognized in another country. That’s why crypto is called the “Cayman Islands bank account” for those individuals who want to hide assets from their soon-to-be-ex partner.
Even if hiding the investment is unintentional, a small amount of Bitcoin can be worth six figures. If one spouse is unaware of the other’s holdings, it can easily be overlooked during a divorce.
If you think your spouse may be invested in cryptocurrency in any amount, hiring a forensic expert may be worthwhile.
Your Florida Family Law Attorney
Digital assets in cryptocurrency are a relatively new topic in the law, and in a divorce, cryptocurrency should be considered a financial asset similar to a stock or mutual fund.
Since the value of cryptocurrency is subject to wild fluctuations, it may need to be liquidated at that time to determine a fair market value that can then be divided between the divorcing spouses.
Attorney Crystal Collins Spencer is an experienced Florida family law professional who will help you understand divisible marital assets and cryptocurrency. She understands that divorce is an adversarial process, and we must look everywhere to uncover all assets that may be subject to equitable division.
Let attorney Spencer put her years of experience to work to advocate for your rights to ensure there are no surprises at the end of the day. Her office in Pensacola helps individuals along the Florida Panhandle including Destin, Fort Walton Beach, and Sandestin.
With over 30 years of experience, Crystal Collins Spencer has experienced how a high-asset partner may try to shortchange the other financially during a divorce. She understands that this is an emotional time and can be particularly stressful when there are complex issues ahead.
Call us at (850) 795-4910 or message us online to schedule your consultation.
Sources:
Fl Statutes
http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.075.html
Forbes
https://www.forbes.com/advisor/investing/cryptocurrency/what-is-cryptocurrency/
A Florida couple can expect that their assets will be divided during a divorce. The guideline in Florida is a fair and equitable division, unlike other states where
community property means everything is divided in half to distribute to each spouse.
In our changing technological world, a question needs to be addressed – what is an asset?
Homes, property, cars, bank accounts, savings – all are considered assets. A value can be assigned to them to divide them during a divorce. But these days, there is a new asset, considered by some to be as valuable as dollars and cents.
Your family law specialist in the Emerald Coast, Crystal Collins Spencer, will explain marital assets during an initial consultation.
What is Cryptocurrency?
Cryptocurrency is a digital asset tied to a blockchain network designed to work as a medium of exchange. It is not linked to any central authority such as a bank or government. Instead, it is governed by computer code. Its value is based on demand.
Cryptocurrencies are volatile investments with varying worth.
According to Forbes, there are 19,000 different cryptocurrencies, and some are invested and growing in value. Bitcoin is the best-known cryptocurrency, along with Ethereum.
Cryptocurrency is treated like any other asset in a Florida divorce and is subject to equitable distribution. Even if just one person owned it before the marriage, if its value grew during the marriage, it could be considered a marital asset.
During a divorce, each party must disclose assets. In the case of crypto, the asset will have to be valued to determine its true worth, or one party may release their crypto holdings in exchange for other marital property. Any outstanding IRS tax obligation may be negotiated during the divorce.
Crypto Asset Hiding
Hiding assets during a divorce can bring a fraud, criminal, civil contempt of court, or a perjury charge if they lie to the court. Some people try to do it anyway.
Unfortunately, cryptocurrency is becoming a way for one spouse to hide assets from the other. These can be high-value assets, and the other spouse may not understand their value.
In a divorce, a forensic expert can look for signs of a cryptocurrency purchase, such as login credentials, digital wallets, and bank or credit card statements. There may be a cryptocurrency listing on a loan application.
If crypto is from foreign exchange, it can be more challenging to track. A subpoena from a U.S. court may not be recognized in another country. That’s why crypto is called the “Cayman Islands bank account” for those individuals who want to hide assets from their soon-to-be-ex partner.
Even if hiding the investment is unintentional, a small amount of Bitcoin can be worth six figures. If one spouse is unaware of the other’s holdings, it can easily be overlooked during a divorce.
If you think your spouse may be invested in cryptocurrency in any amount, hiring a forensic expert may be worthwhile.
Your Florida Family Law Attorney
Digital assets in cryptocurrency are a relatively new topic in the law, and in a divorce, cryptocurrency should be considered a financial asset similar to a stock or mutual fund.
Since the value of cryptocurrency is subject to wild fluctuations, it may need to be liquidated at that time to determine a fair market value that can then be divided between the divorcing spouses.
Attorney Crystal Collins Spencer is an experienced Florida family law professional who will help you understand divisible marital assets and cryptocurrency. She understands that divorce is an adversarial process, and we must look everywhere to uncover all assets that may be subject to equitable division.
Let attorney Spencer put her years of experience to work to advocate for your rights to ensure there are no surprises at the end of the day. Her office in Pensacola helps individuals along the Florida Panhandle including Destin, Fort Walton Beach, and Sandestin.
With over 30 years of experience, Crystal Collins Spencer has experienced how a high-asset partner may try to shortchange the other financially during a divorce. She understands that this is an emotional time and can be particularly stressful when there are complex issues ahead.
Call us at (850) 795-4910 or message us online to schedule your consultation.
Sources:
Fl Statutes
http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.075.html
Forbes
https://www.forbes.com/advisor/investing/cryptocurrency/what-is-cryptocurrency/
