When going through a divorce, most people in Arizona and elsewhere expect to eventually fight over money. Divorcing individuals, accountants and family law attorneys are accustomed to dealing with traditional investments, pensions, property and savings accounts. However, Bitcoin and other forms of cryptocurrency are changing the game when it comes time to divide assets during the divorce.
Since its introduction in 2009, cryptocurrencies like Bitcoin have become unbelievably popular. Part of this popularity is fueled by recent stories of individuals who invested a relatively small amount of money in a cryptocurrency a few years ago and now are sitting on a sizable fortune. For married individuals looking to divorce, dealing with cryptocurrency assets can be difficult and draw out the divorce process. Part of this is because governments and financial institutions are still creating regulations that determine how cryptocurrencies can be used and where they can be stored.
As the popularity of cryptocurrency increases, family law attorneys are dealing with more divorces that involve high-value digital assets being disputed. As a result, lawyers are now asking their clients to fill out a statement of worth, including how much they own in cryptocurrencies.
Cryptocurrencies are more or less unregulated and are encrypted. This has led many to see cryptocurrency as a great way to hide funds from a soon-to-be ex-spouse during a divorce. The more knowledgeable a person is about cryptocurrency, the better chance he or she has of hiding his or her assets. However, this does not mean that it is impossible to trace cryptocurrency wealth back to an individual, especially if the currency was purchased and traded on a crypto trading platform.
A family law attorney can help a client who is concerned about how his or her cryptocurrency investments will come into play during the divorce process. A lawyer may be able to provide an individual with advice on a number of financial issues associated with the divorce process. This could include helping someone understand how to determine the value of the assets and property he or she owns, what to do with shared accounts and shared property as well as other divorce-related financial issues.