Cryptocurrencies have been making waves and boosting early investors into millionaires. Many investors have thousands or millions of dollars invested in Bitcoin, Doge, Ethereum and other valuable currencies.
If you are someone who has invested in crypto and are seeing your marriage head toward a divorce, you should know that your cryptocurrency could be classed as a marital asset. While cryptocurrency transactions may be difficult to trace, hiding those assets could lead to bigger trouble down the line.
If you have cryptocurrency, provide full disclosure
If you have managed to build up a portfolio of cryptocurrency, now is the time to provide disclosure on that money. It’s vital that you discuss when the initial trades were made and how much your currency is worth at the time. Then, you will be in a position to negotiate.
Value volatility is significant with cryptocurrency
Since cryptocurrency markets tend to be volatile, it’s reasonable to look at that volatility during your divorce. The amount you disclose initially may be different from the value at the time of the divorce, which is something that must be addressed. Dividing cryptocurrencies can be difficult, and setting a cryptocurrency against a liquid asset could also be tough.
What should you do if you have cryptocurrencies to disclose during your divorce?
It’s smart to talk to a financial advisor if you have cryptocurrencies and are going to pursue a divorce. You may need to liquidate some of that currency as a part of the divorce negotiations or work out other options for keeping your currency invested. The decisions you make will depend on if those assets are considered shared marital assets, their value at the time of the marriage and other factors.