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What is cryptocurrency and may it divide with divorce?

May 6, 2022 | Asset Division, Firm News

Cryptocurrency is an encrypted digital form of money that generates value from transactions made through blockchain technology. Forbes reports that more than 5,000 types of digital currencies circulate among its users without a centralized government organization managing the transactions.

If you believe your soon-to-be ex-spouse used your household’s income to buy crypto, you may include its value in your marital estate. An up-to-date crypto account statement, for example, could provide you with a current balance. It may show the value of the cryptocurrencies your spouse holds in a digital wallet, which may divide with your divorce.

How may I find out if my spouse has crypto assets?

As reported by CNBC, at least 20 million U.S. residents own digital forms of currency. In April of 2021, Americans’ crypto holdings had an estimated collective worth of $2 trillion. Because of their novelty and extraordinary value, some individuals may “hide” the contents of their digital wallets.

Changes in your spouse’s spending habits may offer clues as to whether cryptocurrencies exist. Examples include buying an expensive car or suddenly having more money than usual. During the divorce, the court requires disclosing bank and investment statements. If individuals hold back a crypto account, the court may subpoena their financial records or electronic devices.

What may I search for in our shared accounts?

You may review your shared bank account statements to learn whether your spouse has transferred money in or out of a private account. Transfers to an offshore bank or a company showing the word “block” may require further investigation into a possible crypto wallet. A copy of your joint tax return may also reveal income received from crypto investing.

During a divorce, the Colorado family court requires dividing your marital estate fairly. Marital assets include the value of investments from stocks, bonds and cryptocurrencies.

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