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Ownership of cryptocurrency has been on the rise in recent years. Many people have invested in it, and it can provide a source of passive income, similar to other investments you may have. But what happens when cryptocurrency becomes part of a divorce? How is it valued and handled? In this blog post, our asset division attorneys at Testa & Pagnanelli, LLC will discuss cryptocurrency and how it is treated in asset division proceedings.
Cryptocurrency Is Handled Similarly to Investments
Cryptocurrency is considered property for legal purposes. That means if you are going through a divorce, any cryptocurrency you own may be subject to division as part of the property settlement. The value of cryptocurrency can be volatile, so getting an accurate appraisal of your assets is important before entering into negotiations with your spouse. You will also need to provide proof of ownership and determine how the cryptocurrency will be divided.
If you have cryptocurrency, it is important to discuss it with your divorce attorney so they can help you protect your assets and ensure a fair settlement. Our attorneys at Testa & Pagnanelli, LLC have experience handling cryptocurrency in divorce proceedings and can help you navigate this complex issue.
What Happens if You Can't Agree on How to Divide Your Cryptocurrency?
If you and your spouse cannot agree on how to divide your cryptocurrency, the court will make a decision for you. The court will consider factors such as each party's income, earning potential, financial needs, and whether one spouse contributed more to acquiring the cryptocurrency than the other. The court may also consider any cryptocurrency that was acquired during the marriage as marital property subject to division.
It is important to note that cryptocurrency is still a relatively new asset class, and courts are still determining how to best handle it in divorce proceedings. If you have cryptocurrency, it is important to discuss it with an experienced divorce attorney who can help you protect your assets and ensure a fair settlement.
Your Family Comes First
When handling asset division during a divorce, it can be stressful as you navigate what will become your new normal. Our high asset divorce attorneys at Testa & Pagnanelli, LLC have experience handling cryptocurrency in divorce proceedings and can help you navigate this complex issue. Schedule a consultation today by calling (610) 365-4733 or filling out our online contact form.