Digital money like Bitcoin and other cryptocurrencies create new challenges in modern divorces. More couples now include these digital investments in their shared wealth, making it crucial to handle them properly during separation.
In Virginia, the law views digital currencies as shared property. This means that both spouses can claim a part of it during divorce—no matter whose name appears on the account.
How Virginia courts handle cryptocurrency in divorce
Virginia law treats digital currencies like regular bank accounts or investments during divorce. Even if only you bought or managed the cryptocurrency, your spouse may still get a share.
Remember, courts aim to split property fairly between both parties. But this doesn’t always mean a 50-50 split. Since cryptocurrency values change quickly, you need good records and expert help to determine fair shares.
Smart tips to protect your crypto investments
One way to protect yourself and your crypto wealth during divorce is transparency. Remember, the blockchain is a public ledger. Trying to hide Bitcoins or other cryptocurrencies may work against you in court.
Here are more tips to help you ensure transparency and protect your crypto investments:
- Document purchase dates and amounts: Keep detailed records of when you acquired each cryptocurrency
- Track source of funds: Keep proof if you used inheritance or pre-marriage money for purchases
- Create asset inventory: List all wallets, exchanges and holdings with current market values
- Secure your private keys: Protect access to your digital wallets while maintaining transparency
- Hire crypto forensics experts: Enlist the help of professionals who can trace and value hidden cryptocurrency assets
These tips help make sure all crypto assets are accounted for and correctly valued during your divorce.
Secure your digital assets during your split
Protecting your cryptocurrency portfolio during divorce requires careful planning and documentation. Expert valuation and proper disclosure ensure a fair division of these digital assets.
If you’re entering your marriage with significant crypto funds, it’s prudent to have a prenuptial agreement. Additionally, consider working with a divorce attorney who understands cryptocurrency to protect your financial interests and ensure compliance with state laws.
