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Bucks County Divorce Attorneys > Blog > Family Law > Insights on Cryptocurrency Assets and Divorce

Insights on Cryptocurrency Assets and Divorce

Cryptocurrency

In recent years, the rise of cryptocurrency and digital assets has transformed the financial landscape, offering individuals new avenues for investment. While there have been wealth accumulation benefits for families in Pennsylvania and New Jersey who have chosen to invest in crypto, the growing popularity of digital currencies has also come with the challenges, such as how to address them in divorce negotiations.

If you are separating and aren’t sure how to start the process of dividing cryptocurrency holdings, or believe your spouse has digital assets they aren’t disclosing, talk to a Bucks County family attorney about how cryptocurrency is treated in divorce cases.

Putting a Value on Digital Assets

Cryptocurrency, such as Bitcoin, Ethereum, and Litecoin, operates independently of traditional banking systems, offering users a degree of anonymity and decentralization. Because of this, these digital assets can present unique challenges in divorce proceedings, particularly when it comes to determining how much the assets are worth and how they will be distributed between the spouses. Unlike tangible assets like real estate or vehicles, cryptocurrency holdings may not be readily apparent or easily traceable, making them susceptible to attempts at concealment or undervaluation.

It is important to remember that in both Pennsylvania and New Jersey marital assets are subject to equitable distribution laws, meaning that they are divided fairly, though not necessarily equally, between spouses when a marriage ends. When it comes to asset review, cryptocurrency holdings acquired during the marriage, regardless of whose name they’re in or how they’re stored, are included in marital assets.

Uncovering all the digital assets held is not always easy, but legal professionals can leverage their expertise and resources to find cryptocurrency holdings and ensure that they are accounted for. There are a few approaches that may be used, such as employing forensic accountants, subpoenaing financial records, or enlisting the assistance of digital asset tracing experts.

Factors Considered During Asset Division

Once all marital assets have been identified and valued, including cryptocurrency holdings, various factors will be taken into account in order for a full and fair divorce agreement to be reached. The length of the marriage, each spouse’s contributions to the marital estate, and their respective financial circumstances all play roles in determining how to divide assets equitably.

When one spouse attempts to conceal digital holdings, or pushes for cryptocurrency assets to be reviewed at a value that is too low, a knowledgeable Bucks County family attorney can advocate for a more just assessment. Misleading financial disclosures can be assessed so an equitable distribution of marital property can be pursued, either through negotiation or litigation.

Were you and your spouse actively buying crypto during the course of your marriage but are now unsure how to distribute these assets as you move to separate? For many couples, the rise of cryptocurrency has added a new layer of complexity to divorce, but the attorneys at Kardos, Rickles & Hand have the skills to guide you through the asset distribution process. To learn more, schedule your consultation today. Call 215-968-6602.

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