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If you own cryptocurrency, you may be well tuned in to understand how your crypto ownership is doing on any given day. Similar to other investments, your cryptocurrency may provide you with wealth for a low buy-in price. Our high-asset divorce attorneys at Sherwood, Johnson & Poles share what you should understand about your cryptocurrency when divorcing.
Will Cryptocurrency Be Considered A Marital Asset?
Your cryptocurrency may be considered a marital asset, but it depends on when the currencies were purchased. If you purchased your cryptocurrency before your marriage, the court may rule that the crypto is entirely yours and exempt from the division of marital assets that your shared assets may undergo. However, the court may also rule that the increase of value sustained over the course of your marriage is a marital asset and that value may be included in the overall asset division. The court will then request a valuation of your cryptocurrency and the initial investment put forth to calculate this increase in monetary value.
If you purchased the cryptocurrency during your marriage, it will be considered a marital asset and involved in the division of assets process. You may wish to inform your attorney that you wish to retain the cryptocurrency holdings following your divorce, so they can plan accordingly when advocating for you during the division of assets. However, with the high volatility of cryptocurrency, you may not wish to fight for ownership of your crypto assets and instead prioritize other assets.
How Cryptocurrency May Be Involved In The Division of Assets Process
Your crypto assets will need to have a valuation done so the court and both parties can understand how much the cryptocurrency is valued and factor it into the overall division of assets. This valuation is done similarly to other investments, such as your investment portfolio, stock options, and stock grants. Then, it will be considered alongside your other marital assets and divided equitably between yourself and your soon-to-be-former spouse.
Sherwood, Johnson & Poles High-Asset Divorce Attorneys
Property division in a high-asset divorce may be difficult due to the unique and high-valued marital assets involved. Our high-asset divorce attorneys understand that you need someone to protect your best interests during this major change.
Do you own cryptocurrency and are preparing to divorce? Schedule a free consultation with our high-asset divorce attorneys today by calling (888) 224-1218. We are waiting for your call.