It is not uncommon for Florida family law attorneys to advise their clients on dividing assets when they are going through a divorce. There is a new challenge that divorcing individuals and those who advise them are facing: cryptocurrencies.
One problem that arises when dividing cryptocurrency assets when a couple divorces is determining its value. It can fluctuate wildly in a short amount of time. For example, a cryptocurrency could have a value of $100,000 at the beginning of the year and then shoot up in value into the millions by the middle of the year. By the beginning of the next year, it could be lower than what it started at. This presents a significant challenge when determining the value of a person’s assets.
It is common for assets to be valued when the divorce is filed. However, it seems that it is better to value cryptocurrencies at the date of distribution. The reasoning behind this is that passive assets, like cryptocurrencies, are going to fluctuate many times throughout the divorce process because they are based on market conditions.
The second problem with cryptocurrencies is being able to find them. It is not uncommon for a person to make an investment without his or her spouse knowing about it. In some cases, the individual doing the investing may be able to completely hide it and end up with a small fortune that is never revealed during the divorce process.
An individual who is going through the divorce process and suspects that his or her soon-to-be ex-spouse has invested in cryptocurrencies may decide to talk to a family law attorney. A lawyer could give advice on how to address issues related to cryptocurrencies, asset valuation and property division and also address other financial and practical issues that arise during divorce proceedings.