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Dividing cryptocurrency is a challenge in a divorce

On Behalf of | Aug 31, 2021 | Divorce |

Property division is a frequent source of discord in a New York divorce. While many will think about real estate, automobiles, jewelry, bank accounts, stocks, and retirement plans, there are other items that can be in dispute. Some are difficult to find and appraise. One such property is cryptocurrency.

Hidden cryptocurrency is a growing problem in a divorce

As more people invest in cryptocurrency, it is becoming problematic during a divorce. Some are using it to hide their assets. Because estimates suggest that more than 20 million people across the nation own cryptocurrency and its value recently reached $2 trillion, there is a great benefit to those who want to retain as much as possible in their divorce. Still, there are strategies to find these assets and ensure they are calculated as part of the divorce settlement. Understanding the obstacles is crucial.

A spouse who is suspicious that cryptocurrency is being hidden should watch for certain signals. That might include prior discussions about it or a large purchase that defies explanation based on known financial circumstances. Some cryptocurrencies such as bitcoin are easier to track than others. Newer versions are harder to find and they might be held in foreign exchanges, further complicating the process. Having guidance in finding these assets is imperative. It is also wise to consider how much the investment there was and if it is worth it to pursue. Given the cost to track cryptocurrency, it is often preferable to simply let it go rather than spending the time and resources finding it.

When heading for a divorce, it is vital to be prepared

To find cryptocurrency and make certain to get a fair share of its value during the divorce process, it is useful to have a plan. The spouse with less money should be prepared.

Checking electronic devices might hold a wealth of information and could be subpoenaed. Forensic accountants can comb through the financial statements, records and tax return to try and find discrepancies. These tactics can be beneficial when trying to get a true accounting of the assets.

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