Cryptocurrency has become one of the more popular ways for people to invest in the digital boom. These digital currencies can be worth thousands of dollars depending on the current trading market. There are multiple cryptocurrencies that people can invest in, and there isn’t a bank account with a statement to make those holdings easy to track down and report to the courts.
Unfortunately, cryptocurrencies can complicate your property division proceedings in your divorce in two different ways.
They are easy to hide
People have realized that cryptocurrency is an effective way to hide assets before a divorce. It can take quite some time to track down someone’s digital holdings, especially if they have taken great pains to hide their financial trail online.
Reviewing your household financial records can be a good place to start when looking for hidden assets, like unreported cryptocurrency holdings. You may require the assistance of a professional, like a forensic accountant, to locate your spouse’s digital Holdings and report them as marital property in your divorce.
They can be difficult to value
Like any other investment, the value of different cryptocurrencies drastically from day to day. It can be hard to settle on an appropriate and reasonable value for cryptocurrency holdings when negotiating property division matters in your divorce.
Recognizing that cryptocurrency can quickly complicate a high-asset divorce can help you during the planning stages of your divorce.