Divorce and Asset Division: How Cryptocurrency Complicates Matters

divorce attorneysAsset division is always a tricky aspect of divorce, especially when neither party is willing to work with one another. After all, it is in each individual’s interests to move quickly and formulate strategies that will help them avoid the “short end of the stick.” These strategies could involve something as simple as recruiting the assistance of qualified legal counsel, or shadier tactics like deliberately concealing or hiding assets.

The concealing of assets during divorce proceedings is nothing new, but this arena just got more complicated with the introduction of Bitcoin and other “cryptocurrencies.” This blog post explores how cryptocurrencies could complicate your California divorce proceedings. To learn more, remember that you can always contact us directly at R & S Law Group, LLP.

Bitcoin and Other Cryptocurrencies are Difficult to Track

In very simple terms, cryptocurrencies are digital currencies that implement encryption techniques to verify transfer and storage of funds. For many, the biggest draw of digital currency is the fact that they operate outside of any central bank, which theoretically renders them immune from government interference.

Naturally, this can make it easy for an individual to hide their assets. While this is illegal, if the assets cannot be located or traced, there is just no proof for the family law courts to rely on. Thanks to cryptocurrencies, it has never been easier to conceal assets. Government bodies are beginning to find ways to combat this, but for now the digital currency landscape is still an unchecked wild west.

Cryptocurrencies are Erratic by Nature

Another defining aspect of Bitcoin and other forms of cryptocurrency (known as “altcoins”) is the fact that their value swings rapidly from day to day. These massive fluctuations have allowed some to become very rich rather quickly while others have found themselves at the brink of financial ruin in a span of hours.

When it comes to divorce proceedings and asset division, the courts might have trouble assigning the proper value to any form of cryptocurrency. On one hand, if the court undervalues the digital currency, an ex-spouse could find themselves robbed of their fair share of the assets. Likewise, overvalued coins could lead to an arrangement that is unfair for the other party.

You Need a Divorce Attorney on Your Side

Divorce is an extremely complicated affair, and the introduction of Bitcoin and other altcoins is only mudding the waters even more. Moving forward with divorce proceedings without first securing qualified legal representation is unwise. A skilled attorney can help you identify hidden assets, ensure that your property division proceedings move along fairly and accurately, and fight to protect your interests at all times.

For all your asset division and divorce matters, as well as any other matters involving family law in California, contact the skilled attorneys at R & S Law Group, LLP. Call us today to schedule a free initial consultation.