Cryptocurrency has been a growing trend in recent times, and it is becoming a significant factor in marriage dissolution cases. The emergence of digital currency has brought about a new dimension to divorce proceedings, causing more problems among couples. CNBC has recently reported on the impact of cryptocurrency on divorce cases, and it paints a rather complicated picture.
According to CNBC, divorce attorneys in America have reported a substantial rise in the cases where cryptocurrency has played a role in the divorce proceedings. Divorce attorneys are increasingly having to navigate complex financial matters that arise from the use of these digital currencies. Since cryptocurrencies operate outside traditional financial systems, tracing and valuing them can be exceptionally challenging.
One of the significant issues with cryptocurrency is that it may be easier for one spouse to hide assets using digital currencies than with traditional hiding methods. The decentralized, anonymous nature of digital currencies enables individuals to transact without a physical paper trail. Whilst regular bank accounts and financial transactions leave a visible trace, cryptocurrencies such as Bitcoin and Ethereum operate under a veil of secrecy that makes it challenging to trace and estimate their value adequately. This fact has made it easier for spouses to use digital currencies to hide their assets in a divorce setting.
It is also worth noting that cryptocurrency continues to be a volatile and unpredictable asset class. The value of cryptocurrencies can fluctuate dramatically within a short period, causing significant problems for couples attempting to split their assets. Therefore, accurately valuing any cryptocurrency holdings amidst a marriage dissolution can be particularly arduous. Additionally, since digital currencies operate independently from traditional financial institutions, it can be challenging to access these funds in a divorce case.
The article went on to report a case where a divorcing couple dealt with Bitcoin transactions for years, which made divulging its value a herculean task. As such, the value of cryptocurrency can add another layer of complexity to an already complicated divorce.
Another significant problem that cryptocurrencies present is the possibility of unequal distribution of assets. Using digital currencies can result in spouses intentionally or unintentionally hiding their assets from view. This could result in an imbalance in the sharing of marital assets, leading to one spouse walking away with more than their fair share.
The use of cryptocurrencies in divorce cases is a relatively new phenomenon. Therefore, legal experts are continuing to learn and adapt to this new dimension of asset evaluation.
One potential solution to this problem involves collaborating with forensic accountants or digital asset experts. These professionals can work with lawyers to detect discrepancies in financial records presented by either spouse and trace any hidden digital currency holdings. This team approach helps ensure that parties are committing to a fair and equitable settlement, ultimately leading to a more satisfying outcome for both parties involved.
In conclusion, as the use of cryptocurrencies becomes more widespread, legal experts, financial advisors, and divorce attorneys must be prepared to address the issues associated with digital currencies and marriage dissolution cases. The complications surrounding cryptocurrency can make divorce proceedings even more complicated than usual. It is essential for spouses to be transparent about their digital assets and to work collaboratively to ensure a fair and equitable distribution of marital assets. Understanding the complexities of cryptocurrency and its impact on divorce proceedings is an essential step towards a peaceful and fair settlement.
Overall, the rise of cryptocurrency is causing more problems in divorces, and as CNBC reports, legal professionals experienced in handling divorce cases must become familiar with cryptocurrency to ensure both parties receive a fair and equitable settlement.
Divorces are often complex and emotional, and with the emergence of cryptocurrency in financial investments, these proceedings have become even more complicated. A new report by CNBC finds that cryptocurrency is becoming an increasingly problematic issue in divorces. It is not only ownership, but the hiding of cryptocurrency investments by spouses that is creating serious conflict in many divorce cases.
Many divorce attorneys have revealed that more and more of their clients have been hiding their cryptocurrency assets to keep them out of any divorce settlements. CNBC reported that attorneys in Florida, Texas, New York, and California told them that in the cases they handled, crypto now played a role in roughly 20% to 50% of divorces. This is because cryptocurrency has become a popular investment in recent years, and this trend is expected to continue to grow as time goes on.
An individual hiding their cryptocurrency assets from their spouse is becoming increasingly common. CNBC reported that one woman was shocked to learn that her husband was hiding bitcoin worth about $500,000 during their divorce. This is not an isolated case, and many financial advisors and divorce attorneys are faced with a similar scenario.
The forensic accountant divulged that her then-husband had very few assets that could be split in the divorce. However, after months of investigation, she discovered an undisclosed crypto wallet held by her husband containing 12 bitcoins, presently worth just over $324,000. She told CNBC that the discovery was a “shock,” but her story appears to be a part of a growing trend.
The exceptional volatility of cryptocurrencies is also contributing to the complexity of divorces, causing delays in the resolution of divorce cases. Even when couples are open about their investments, the highly volatile nature of cryptocurrencies can complicate proceedings because of how quickly its value can change.
Furthermore, when a spouse tries to hide their cryptocurrency holdings, it becomes even more challenging to track them. Divorce attorneys in Texas have emphasized how difficult it can be to find information related to somebody’s cryptocurrency holdings. This is because cryptocurrency is not regulated by any centralized bank, making it difficult to subpoena somebody and get documents related to their crypto holdings.
In some complicated cases, investigators revealed that one spouse was transferring their cryptocurrency across various coins on multiple blockchains to keep it hidden from their partner. This method makes it even more challenging to track, in turn, prolonging the divorce proceedings.
In conclusion, cryptocurrency is becoming an increasingly complex issue in divorces. From hiding assets from a spouse to transferring cryptocurrency across various coins, these scenarios are now prevalent in divorce cases. Financial advisors and divorce attorneys are also finding it challenging to keep up with the volatile nature of cryptocurrency, causing delays in the resolution of the divorce cases. As cryptocurrency continues to become a popular investment in recent years, it is expected that the confusion and complexity surrounding it would continue to grow, creating more conflict in divorce cases.
Watch the full report from CNBC here.