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Challenges associated with dividing cryptocurrency in a divorce

On Behalf of | Sep 28, 2021 | Blog, Property Division |

When you and your Texas spouse decide to divorce and one of you owns cryptocurrency, you may need to figure out how to divide it in a way that appeases both parties and results in a fair split. Because cryptocurrency is relatively new, there is not much of a precedent set when it comes to how to go about dividing it in a divorce.

Pe CNBC, many people who must divide digital currency during their divorce proceedings encounter similar challenges. When you and your ex split up cryptocurrency during asset division, you may need to navigate the following hurdles.

Transferring the cryptocurrency

Few people know how to go about transferring digital currency from one party to the next. A digital currency exchange may have a small team of professionals on staff who might be able to offer guidance in this area. However, you may need to enlist the aid of a financial professional to make sure you receive your fair share.

Valuing the cryptocurrency

Digital currency, by nature, is quite volatile, and its value may undergo a sizable change from day to day and week to week. For this reason, some divorcing couples choose to use formulas or percentages, rather than dollar amounts, to determine how much cryptocurrency to transfer.

Paying taxes on cryptocurrency

Owning or transferring cryptocurrency may also have important tax ramifications. The more you know about what to expect, the lower the chances of you finding yourself in trouble during tax season.

Digital currency may be complex, but it may also hold a high value. If you suspect your spouse owns cryptocurrency that he or she may be trying to hide, it may serve you well to get to investigate further.

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