Welcome to the New Year. Cryptocurrency should be part of your divorce plan. This Horowitz Highlights blog post contains information about what you need to know regarding valuing, disclosing, and dividing cryptocurrency during a divorce.
January is nicknamed “Divorce Month” because many people use the New Year for fresh starts. This trend involves emotional reflection, financial clarity after year-end, and the psychological desire for a “new beginning” in January. Beneath the urge to make spirits bright for the entire family during December, cracks in relationships may become impossible to ignore, which is why it is no coincidence that January sees a significant spike in divorce filings.
Meanwhile, the meteoric rise in digital asset ownership requires divorce lawyers to discuss this form of marital property with their clients. Cryptocurrency is a type of digital currency that exists only online and can be used as a form of payment or investment. Crypto, such as bitcoin, ether, and NFTs, in a divorce is treated as marital property, requiring full disclosure and fair division.
Instead of relying on banks, cryptocurrencies use blockchain technology – a ledger maintained by a network of computers – to record transactions securely. Many investors view crypto as a way to diversify beyond stocks and bonds. It’s a fast-growing, innovative asset class, but it’s also high risk with crypto prices swinging wildly in a short period.
Crypto’s novel digital nature necessitates that legal professionals understand valuations, tracing blockchain transactions, and using forensic experts to uncover holdings when dividing marital property. As cryptocurrency is an increasingly relevant topic in divorce, Sara Horowitz PA is here to guide you through the legal, technological, and financial aspects. Schedule a consultation to talk through your options and protect your future.
Millennials, who hold the highest amount of crypto as per the Federal Reserve, are approaching peak divorce years. The crypto wealth accumulation phase is snowballing at a rapid pace. These assets can be moved instantly, and we help clients determine who holds the private keys, who controls the wallets, and how to trace transactions on the blockchain. At Sara Horowitz PA, we can help protect what is rightfully yours.
Have crypto questions? We’ve got answers. Tracing, authenticating, and negotiating crypto presents a variety of questions in divorce. Were the coins purchased before or during the marriage? Stated another way, when was the cryptocurrency acquired? How do you include digital assets on financial affidavits? How do you trace crypto across continents and into wallets and exchanges? What about tax liability when it comes to crypto? How do you handle the volatility of the underlying digital asset? Can blockchains record financial information forever and provide an audit trail to reconstruct financial behavior? How do you divide crypto in a divorce? What are the pros and cons of strategies surrounding splitting the crypto, selling and splitting the proceeds, or offsetting the crypto with another asset?
Engage with a Family Law expert to assist with your divorce and digital assets. For tax and property law purposes, cryptocurrency is treated as property, not as money. In divorce, that means bitcoin, ether, stablecoins, tokens, and NFTs acquired during the marriage are usually part of the marital estate, just like a brokerage account or a home. It is vital to work with professionals who understand this evolving asset class. We’re here to help you navigate wisely and emerge in your divorce with clarity and confidence. We can also refer you to the right financial expert to make the process even smoother.
At Sara Horowitz PA, we listen to your priorities and adapt our approach to the specific needs of clients. Whether the case involves asset tracing, account security, or negotiating a fair settlement, our advocacy reflects a real understanding of Florida’s divorce landscape coupled with client needs. You can rely on us for results-driven counsel that treats your concerns as our own. Email sara@horowitzlawpa.com or call 954-300-1602. Stay tuned for more updates about digital assets on our YouTube channel, Sara Speaks!
