Ordway Law Group, LLC
Ordway Law Group, LLC
Divorce & Family Law

Cryptocurrency playing a bigger role in divorce cases

On Behalf of | Jan 11, 2022 | Divorce, Property Division |

When you decide to split from your Georgia husband or wife, one of the things you must do in the aftermath is figure out how to handle property division. Your ability to receive your fair share depends to some degree on either your spouse’s honesty about his or her assets or your ability to find those he or she may try to shield. Increasingly, divorcing parties are using cryptocurrency, or digital currency, to help hide assets from their former partners.

According to CNBC, estimates suggest that about 20 million Americans own cryptocurrency. For some, the value of the digital currency is considerable, so if you suspect your spouse owns some, you might be doing yourself a disservice by not investigating further. Many people facing similar circumstances encounter the following challenges when doing so.

Finding the cryptocurrency

Because of its digital nature, cryptocurrency may prove hard to track down. You may need to have a forensic accountant or someone with similar skills delve into your ex’s online accounts and communications to determine if he or she has cryptocurrency, and if so, how much.

Assessing the value of cryptocurrency

Another common issue when it comes to cryptocurrency and divorce is figuring out how much value the cryptocurrency holds. The value of the digital currency fluctuates quite a bit, so its value on the day you initiate your divorce may be much different than its value right before things become official.

Once you find and determine the value of any cryptocurrency your partner has, you may also want to look into how it might impact your taxes. Anyone who has cryptocurrency income must report it to the IRS just like all other forms of income.

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