Cryptocurrency as an Asset in Divorce: Valuation, Division and Location of Currency

Description

At the beginning of a divorce, one of the first steps for a family law attorney is to identify and value each spouse's assets. Cryptocurrency presents unique challenges because it does not always require the use of a third-party financial institution to hold or transmit the asset (making these assets easy to hide) and difficult to value because the value of cryptocurrency is notoriously volatile.

In today's divorce proceedings, counsel must formally request documentation concerning cryptocurrency as you would any other financial account, as well as to review financial statements for signs of cryptocurrency transactions. Failure to do so may deprive the non-cryptocurrency owning spouse of a significant financial asset. Additionally, this information may identify activities by a spouse that constitute a fraud on the marital estate.

If a spouse does own cryptocurrency, the next step is the valuation of the currency for distribution. Unlike most assets, cryptocurrency is highly speculative and subject to wild swings in value.

Listen as our panel provides guidance to family law practitioners on how to handle cryptocurrency assets in a divorce. The panel will discuss how to navigate the unique issues of locating and valuing digital assets, as well as best practices for handling this marital asset.