In today’s world, cryptocurrency has become a common asset. As digital currencies gain popularity, they also gain relevance in divorce proceedings. Understanding how to divide these assets in Washington State can help ensure a fair settlement.
Cryptocurrency is prevalent among tech industry workers. Employees often invest in digital currencies as part of their asset portfolios. This trend presents new challenges in divorce due to the complex valuation of cryptocurrency.
Understanding the law
Washington State is a community property state. This means that the assets acquired during the marriage are divided equitably, including:
- Real estate
- Stocks
- Retirement accounts
- Cryptocurrency
Still, equitable does not mean equal. The division of assets aims to be fair. To achieve this, the law considers a range of factors, like the duration of the marriage and the financial positions of each spouse.
In Washington, the court considers community and separate property when dividing assets. If your spouse can prove that they acquired the cryptocurrency before the marriage or that it was a gift or inheritance, it may be considered separate property. Still, any increase in value during the marriage could still be subject to division.
Valuing cryptocurrency
Determining the value of cryptocurrency is crucial in its division. Unlike traditional assets, cryptocurrency is highly volatile, with prices fluctuating significantly. This volatility can complicate the asset division process. Therefore, it is essential to establish a precise valuation date to ensure a fair distribution.
Is your spouse hiding cryptocurrency?
Tracking cryptocurrency can be challenging due to the anonymity it provides. Spouses may try to hide these assets, complicating the divorce process. Fortunately, a knowledgeable attorney can help uncover hidden cryptocurrency. This way, you can ensure it is included in the asset division.
Still, if you and your spouse disclose all assets before the divorce, the process can be simpler. For example, you could try an alternative dispute resolution method, such as mediation. This way, you can avoid going to court and solve all issues privately.
Negotiation can be a powerful tool to end a marriage amicably. Still, if you suspect your spouse is hiding cryptocurrency or other assets, your attorney could advise going to court. It all depends on the details of your situation. That is why it is essential to seek personalized legal counsel in divorce.
As cryptocurrency becomes an integral part of asset portfolios, understanding its role in divorce proceedings is crucial. In Washington State, asset division requires careful consideration and expert guidance. By working with experienced professionals, you can protect your rights and achieve a fair outcome in your divorce.