How Cryptocurrency Can Impact Your Divorce
Cryptocurrency is a type of digital currency which is rapidly gaining popularity. Bitcoin, Litecoin, and Ethereum are some of the most popular brands, but many other cryptocurrencies are also available. The word “cryptocurrency” refers to the fact that encryption techniques are used to safeguard transactions involving the digital asset. These currencies are popular in part because they can be exchanged in decentralized, peer-to-peer networks which are unregulated by governments. Because of the unfamiliar and shadowy nature of cryptocurrency, divorces involving such digital assets can be complex.
Cryptocurrency Treated the Same as Other Assets in Divorce
If you or your spouse has invested in Bitcoin or another type of cryptocurrency and you plan to get divorced, the currency will be subject to division along with other marital property. Illinois is an “equitable distribution” state. This means that if you purchased the cryptocurrency during the marriage, you may have to share it with your soon-to-be-ex-spouse. Illinois divides property and assets based on many factors including each spouse’s income and future employability instead of diving the property 50/50. So, it is not guaranteed that the person who purchased the cryptocurrency will end up with all of it post-divorce.
Spouses May Attempt to Hide Wealth in the Form of Cryptocurrency
When courts make decisions about a divorcing couple’s property or support payments, they consider each person’s current and expected future wealth. In order for the court to make an informed and just decision, it imperative that both parties are honest and transparent about their finances. Unfortunately, some spouses attempt to cheat the other by misrepresenting their financial status. Cryptocurrency is extremely difficult to value and track. Some experts worry that the nature of cryptocurrency will make it an easy asset to hide during divorce. As such, an unscrupulous spouse may even use cash to buy cryptocurrency in an attempt to keep the funds away from the divorce process.
Let Us Help
If all of this sounds overwhelming, know that you do not have to face divorce alone. At MKFM Law, we diligently work with our clients to find solutions that benefit them and their family. If you are planning to divorce or have further questions about hidden assets, property division, spousal maintenance, child support, or another family law matter, contact one of our experienced DuPage County family law attorneys today. Call us at 630-665-7300 to speak with a member of our team or to schedule your confidential initial consultation.