Cryptocurrencies have allowed some Texas investors to accumulate a relatively large amount of wealth from a relatively small initial stake. The very nature of cryptocurrencies makes hiding all of this wealth easy. Understandably, this can be a problem when going through the divorce process.
During a divorce, it is hoped that both parties will lay all of their financial information out on the table with the goal of having an equitable separation. However, since a person could have invested in cryptocurrency without their spouse even knowing, they could easily conceal these funds. What makes things even more challenging is that family law attorneys are not always familiar with cryptocurrency. Many of them, like the majority of the population, only became aware of cryptocurrencies in recent years.
Trying to trace an individual’s cryptocurrency investments is a time-consuming and often expensive process. If a person purchased cryptocurrencies online, there might be a digital footprint that can be traced. But a number of these exchanges happen offline, making them virtually impossible to trace.
Even if a divorcing spouse discloses their cryptocurrency accounts, the value could be difficult to determine. It is not uncommon for cryptocurrencies to gain or lose value at an astonishing rate. That’s why the valuation process is often done at the date of transfer.
Family law attorneys are learning more about how to handle cases involving cryptocurrencies. This means that if an individual is going through a divorce, their family law attorney could provide them with advice on how to handle their cryptocurrency accounts. They may be able to provide advice on the laws pertaining to joint accounts, shared property and shared debts.
