Cryptocurrency has seen its fair share of ups and downs recently. Not too long ago, it was considered an unusual investment choice. Today, however, cryptocurrency investment has become more mainstream. For that reason, it has played a role in many Florida divorces. In this article, the Tampa, FL divorce lawyers at Westchase Law, P.A. will discuss how cryptocurrency is treated during a Florida divorce.
The marital estate
The marital estate includes any assets that were purchased during the marriage. This includes things like real estate, businesses, retirement accounts, and yes, even cryptocurrency. Unlike businesses, cryptocurrency is generally easier to valuate due to exchanges that show how much the cryptocurrency is worth in relation to the U.S. dollar. While cryptocurrency has seen its fair share of ups and downs over the past year, it isn’t very difficult to determine how much it is worth. For that reason, it’s easier to divide cryptocurrency during a divorce.
Asset distribution and cryptocurrency
In Florida, all assets acquired during the marriage are subject to equitable distribution in a divorce. This means that any asset acquired during the marriage is part of the marital estate and will need to be equitably distributed. Often, this entails a 50/50 split of the assets but that isn’t necessarily the case always. When this process occurs, cryptocurrency is treated the same way as any other asset that is property of the marital estate. It is subject to equitable distribution. Save for a prenuptial agreement protecting cryptocurrency assets, the cryptocurrency will be distributed as part of the marital estate.
While it’s easy to determine the value of cryptocurrency at any given moment, rapid fluctuations in the market sometimes make it difficult to determine its worth throughout the course of a divorce. The value may change suddenly due to any number of factors meaning that valuators will have to go back and evaluate the value at any given time.
Valuation must be done correctly to ensure the fair distribution of cryptocurrency assets. An experienced Tampa, FL divorce lawyer can help with the process of accurately determining the value of cryptocurrency for the purpose of distributing it during a divorce. Our attorneys work with experts to help properly evaluate cryptocurrency.
Digital wallets and hidden assets
Cryptocurrency is harder to find than other types of assets. It is possible that a spouse might try to hide their cryptocurrency holdings from the other spouse. Cryptocurrency is held in digital wallets which may be more difficult to trace. Often, however, spouses know about the other spouse’s digital holdings. Some digital wallets are easier to trace than others. This presents an issue for divorce attorneys. If you suspect your spouse is hiding assets in your divorce, you should mention that to your attorney.
Talk to a Tampa, FL Divorce Lawyer Today
Westchase Law, P.A. represents the interests of Tampa, FL residents who are seeking a divorce. We can help with all aspects of your divorce including the valuation of cryptocurrency investments. Call our office today to schedule an appointment and we can begin addressing your concerns immediately.