Cryptocurrencies are starting to play a role in more divorces throughout Washington and the rest of America. Family law attorneys are taking the time to get more familiar with how crypto could factor into the divorce process. Not too long ago, there would be very little reason for anyone to think that cryptocurrencies would play a role in how a divorce would be handled.
While cryptocurrencies have been in use for more than 15 years, it wasn’t until 2017 that people really started paying attention to them. This was the year that the value of bitcoin went up to $200,000 per coin. The result was that some who made small investments in this cryptocurrency were able to walk away with a large fortune. All of this plays a role in asset valuation during the divorce process.
Part of the issue is that cryptocurrency assets are encrypted and can be anonymous. They are difficult to track, especially when an investor uses cash to purchase cryptocurrency. Some experts are worried that spouse will use this form of currency to hide large sums of money in order to avoid disclosing it when they file for a divorce.
This problem could impact individuals in all income brackets. However, it will most likely be a bigger issue when dealing with high-asset divorces. Legislation may eventually make changes regarding how passive assets are protected and distributed during a divorce.
If a person feels that their soon-to-be ex-spouse is hiding money in cryptocurrency, a family law attorney may be able to investigate. Legal counsel could also help a client with asset valuation, property division, child custody, alimony and dividing debt.