Cryptocurrency, a digital form of money, has become increasingly popular in recent years. As with stock and real estate purchases, people invest in cryptocurrencies hoping to grow their wealth.
However, when couples decide to part ways, dividing these holdings can add complexity to the divorce process.
Understanding cryptocurrency
Cryptocurrency is stored digitally and traded on online platforms. Unlike traditional money, it is not regulated by any government or financial institution. Its value can be volatile, meaning it can change rapidly and unpredictably.
Division of assets
When a couple divorces, they must divide their assets, including any cryptocurrency they own. This can be challenging because cryptocurrencies are intangible assets stored in crypto wallets. Unlike physical assets like cars or houses, they may not be easily divisible. There is also added concern about one spouse hiding or incorrectly reporting cryptocurrency holdings.
Valuation
The worth of cryptocurrencies can fluctuate significantly, making it hard to establish a fair value for division. Couples may need to consult financial experts to assess the worth of their holdings accurately.
Legal considerations
In Massachusetts, cryptocurrency counts as a financial asset during divorce proceedings, meaning it is subject to the same laws governing the division of other types of assets. Courts may consider factors like the acquisition date of the cryptocurrency and whether it was purchased jointly or individually.
Divorcing couples with cryptocurrency holdings must understand these complexities in order to reach a fair settlement. Seeking guidance from legal professionals who are well-versed in asset division issues can help couples navigate this process successfully.