As those seeking divorces become younger and younger, the assets that are split are changing. One asset class that is ever increasing is cryptocurrency, and many true believers may believe that diamond handing is the only way that they can truly make the returns they deserve. And, they may fear that in a divorce, they may have to sell their crypto.
Cryptocurrency is an asset that must be disclosed in a divorce
Divorcing couples in Virginia are required to disclose all assets and debts, including their cryptocurrencies. Crypto is an asset that has value, like any other asset class, and the family court has powers to make orders against it on divorce.
If you fail to disclose your crypto assets or any other property, you could face serious legal consequences, such as contempt of court, sanctions or even criminal charges. This is because our state follows the equitable distribution principle, which means that the court will divide the marital property fairly between the spouses.
What if one spouse values it more than the other?
Spouses have the ability to negotiate prior to going to the court and make a separation agreement. If one spouse values their cryptocurrency more than its book value (the value listed on the open market), then it can be leveraged against other assets to potentially not be sold in exchange for other assets being given to the other spouse. This is similar to Meme stocks, things of sentimental value or even pets. Both spouses value items differently and both spouses can use these different values to divide their assets equitably.
Cryptocurrency is a new and complex form of property that can pose some challenges in a divorce. However, with proper disclosure, valuation and division, you can protect your rights and interests in your crypto assets. And, it can be used to leverage an agreement.