Tips for navigating the cryptocurrency maze during a divorce
TropicNow marketing partners WGC Lawyers dive into the puzzling world of Bitcoin and cryptocurrency and how it relates to divorce proceedings.
While technology has done a whole lot of good for the world, it has also made certain areas of law considerably more complex. This is especially true when it comes to divorce and legal division of assets.
Dividing up property is already a messy process but when you add in online assets like cryptocurrency, the legal process gets a whole lot more complicated.
Cryptocurrencies – online currencies with real-time monetary value – present new problems for divorcing parties and their lawyers because these online assets are very difficult to trace and can be easily concealed from spouses and legal representatives alike.
Your monetary assets are no longer limited to physical currency. Your monetary assets are no longer limited to physical currency.
What do divorcees need to consider when it comes to cryptocurrencies?
Cryptocurrencies are quickly becoming a weapon for many divorcees, according to Financial Times contributor Jane Croft.
The relative anonymity of these currencies provides divorcing parties with a clever way to hide assets – allowing them to avoid full disclosure of their monetary property. What should you keep in mind about these currencies when heading into divorce conversations?
Remember to specifically ask about cryptocurrencies – Knowing that cryptocurrencies can play a part in your divorce settlement is half the battle. Make sure to ask about them specifically from the onset.
Try to trace the money – The fact is, divorcees with money in cryptocurrencies will not always be upfront with these assets.
When possible, try to track the money trail. While the movements of actual cryptocurrencies aren't easily traceable, the conversion of regular assets into these online assets will leave clues – try to pinpoint them as proof.
Enlist the help of professionals – Dealing with the legalities of these currencies is complex at best. You should enlist the help of experienced lawyers to ensure you are dealing with the existence of online assets as effectively as possible.
Bitcoins: What and how?
So what even is cryptocurrency? The most common version comes in the form of Bitcoins. According to the Oxford Dictionary, Bitcoin is:
"A type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank."
Dealing with online currencies and the division of assets in a divorce settlement is a process that should involve the help of experts.
Here at WGC we have a team of lawyers that can help you navigate these murky waters to ensure you are getting your fair share during your divorce settlement – cryptocurrencies or not.