Many California investors were introduced to cryptocurrencies in 2009. Bitcoin was the first cryptocurrency to gain international prominence. Now, almost a decade later, divorce attorneys are having to deal with the challenge of dividing assets when one or both exes have cryptocurrency holdings.
Although cryptocurrencies and their role in divorce proceedings are relatively new, most family law attorneys agree that this is something that will become more and more prominent. The reason why evaluating and dividing cryptocurrencies is challenging is that many lawyers are not familiar with these currencies or how they work.
Another problem is that cryptocurrencies are notoriously easy to hide. Some have referred to crypto as the new offshore account option. A divorcing individual could have a sizable fortune in cryptocurrencies without their soon-to-be ex-spouse even knowing about it. Someone who secretly invested in cryptocurrencies a few years ago could now have a small fortune. Therefore, their spouse may have had no idea that the initial investment was successful.
It’s also important to note that cryptocurrencies are fluid. Their prices fluctuate rapidly. During the morning, a cryptocurrency could have a relatively low value. By the end of the day, it could be a lot higher. All of this makes tracing undisclosed cryptocurrencies a challenge that is time-consuming and could be expensive. Of course, tracking down the funds is not impossible, especially if the transactions were made online.
A family law attorney may be able to help a client by advising them on how to deal with shared accounts, even those involving cryptocurrencies. They may also be able to help with other practical matters connected to the divorce process.