Cryptocurrency, or digital currency, has become a hot-button issue in Massachusetts divorces. Many Americans now own at least one type of cryptocurrency. Yet, because it is relatively new, there are many questions about the role it plays in divorce and how divorcing parties might split what digital currency they own.
According to GoBankingRates, about 14% of Americans currently own cryptocurrency. However, many who do, or whose spouse does, are encountering similar challenges when they decide to end their marriages. Some of these challenges include the following.
Finding cryptocurrency
Husbands and wives may not know whether their partners own cryptocurrency. Even if they do know about it, they may not know where to find it. If one party in the marriage makes a decent living but is not bringing much to the table as far as assets, this may be a sign that that party holds cryptocurrency. Digital assets are easier to conceal than many other types of assets. However, a forensic accountant or attorney may be able to help determine whether a soon-to-be-ex-spouse has digital assets by reviewing tax returns, computer hard drives or other areas.
Valuating and dividing cryptocurrency
Cryptocurrency has value, but its value fluctuates over time. This creates challenges for former couples trying to decide what digital currency is worth. Even then, transferring cryptocurrency from one party to the other often creates new hurdles.
Finding, valuating, dividing and transferring cryptocurrency may prove complex. Yet, because of how valuable it may be, divorcing parties may be remiss not to perform their due diligence in this area.