As the world becomes increasingly digital, so do our assets. Cryptocurrency has become one of the most popular forms of investment and is forecasted to reach a global value of $3.1 trillion by 2030. However, what happens when crypto is acquired during the marriage and the couple decides to divorce? Are these virtual assets treated differently than other marital property?
As it turns out, divorcing couples must treat crypto assets just like any other asset during the division of property. In this post, an experienced high net worth divorce attorney in New York explains how cryptocurrency is divided and what you can do if you suspect your spouse is hiding those elusive digital coins.
Crypto Assets Are Treated as Any Marital Assets
When a couple decides to divorce, all of their marital assets must be divided equitably. This includes any cryptocurrency that was acquired during the marriage. Crypto assets are treated just like any other property, meaning they are subject to division under New York’s equitable distribution law.
It’s important to note that only assets acquired during the marriage are considered marital property and subject to fair distribution. Any crypto assets owned by one spouse prior to the marriage or received as a gift or inheritance during the marriage may be considered separate property and not subject to division in a divorce settlement.
Additionally, it can be challenging for divorcing couples with cryptocurrencies at stake as these digital assets can be difficult to value accurately. It is crucial for both parties involved in the divorce proceedings to provide documentation of their cryptocurrency holdings so that an accurate valuation can take place.
If you’re going through a divorce in New York with cryptocurrency at stake, it’s essential to work with an experienced attorney who understands how these digital assets should be treated during asset division proceedings.
New York Applies an Equitable Distribution Rule to Marital Assets
In New York, marital assets are subject to equitable distribution. This means that all property and assets acquired during the marriage will be divided fairly, but not necessarily equally, between both parties in a divorce.
Equitable distribution takes into account various factors such as the length of the marriage, each spouse’s financial contributions to acquiring assets, and any non-financial contributions made by either party.
When it comes to crypto assets in a divorce case, they will also be treated as marital property subject to equitable distribution. This is why it’s important for both spouses to disclose all their crypto holdings during divorce proceedings so that they can be properly valued and divided.
While dividing crypto assets can present unique challenges due to their volatility and complex nature, an experienced divorce attorney in New York can help ensure that you receive a fair share of these digital assets.
Signs that Your Spouse Is Hiding Crypto Assets
Divorce can be a messy and complicated process, especially when it comes to dividing up assets. With the rise of cryptocurrency, spouses may attempt to hide their crypto assets in order to avoid having them divided during the divorce settlement. So how do you know if your spouse is hiding crypto assets?
One sign could be that they suddenly become very secretive about their financial information or start making frequent large purchases without explanation. They may also try to steer conversations away from finances or become defensive when asked about their investments.
Another red flag could be if there are discrepancies between reported income and expenses on tax returns or bank statements. If you notice any unexplained transfers, deposits, or withdrawals from unfamiliar accounts, it’s worth investigating further.
By being aware of these signs and seeking out the right legal assistance, you can protect yourself during your divorce proceedings and ensure that all marital assets are fairly distributed.
Cryptocurrency Is Not Untraceable: Ways in Which a Lawyer Can Discover Hidden Bitcoin
Cryptocurrency has often been touted as an anonymous and untraceable currency, which has made it a popular means of payment for illegal activities. However, this does not mean that cryptocurrency is entirely untraceable.
In a recent divorce case, a specialist called a crypto hunter managed to uncover $500,000 worth of Bitcoin hidden by one of the spouses.
In the context of divorce proceedings, if one spouse suspects the other of hiding cryptocurrency assets, their lawyer can employ various methods to uncover these hidden assets. One such method is by scrutinizing bank statements and credit card bills for evidence of small transactions that could indicate purchases or trades made with cryptocurrencies.
Another way in which a lawyer can uncover hidden Bitcoin is by conducting forensic analysis on electronic devices such as computers and smartphones belonging to the suspected spouse. This involves searching for trace elements left behind when using cryptocurrencies such as digital wallets or exchange accounts.
Additionally, social media activity can be examined to look for any online discussions regarding cryptocurrency trading or investments. Online forums dedicated to discussing crypto-assets may also hold valuable information about any potential hidden assets.
It’s important to note that while tracing cryptocurrency may be challenging, it’s not impossible – especially with an experienced divorce attorney in New York who knows how to navigate through the legal system and obtain all relevant evidence necessary in court.
In Some Cases, Your Lawyer Will Hire Digital Forensic Experts
In some particularly complex divorce cases, spouses may attempt to hide assets such as crypto assets from one another during the divorce proceedings. When this happens, your lawyer will need to take extra steps to discover and recover these hidden assets.
One of these steps may involve hiring a digital forensic expert. These experts specialize in uncovering digital evidence that may be difficult for lawyers without their specialized training and tools to obtain.
Digital forensic experts can help your lawyer track down any cryptocurrency accounts or wallets that your spouse has been attempting to keep secret. They can also help trace any transactions involving those accounts back through the blockchain network.
While hiring a digital forensic expert is an added expense in your already costly divorce case, it’s often worth the investment when substantial amounts of money are at stake. With their help, you’ll have a better chance of recovering all of the marital assets that you’re entitled to receive.
An Experienced Divorce Attorney in New York Will Make Sure You Get a Fair Share of All Marital Assets!
Navigating a high net worth divorce can be an incredibly stressful and emotionally taxing time, especially when it comes to dividing assets. The rise of cryptocurrency has added another layer of complexity to the process. However, with the help of an experienced divorce attorney in New York, you can rest assured that your interests will be protected.
If you’re considering a divorce or currently going through one and have concerns about how your crypto assets will be divided, don’t hesitate to seek out legal counsel from a trusted attorney in New York at the Douglas Family Law Group. Call us today!
