Cryptocurrency in your divorce mediation
Dividing assets in your divorce may get sticky if the situation involves miscommunication. Digital assets throw a whole new wrench into the mix. Cryptocurrency has seen a steady increase in mainstream interest in the media.
Much like any marital asset, the courts have ways of dividing it. There are unique factors about it to consider when discussing its division in mediation or when making the hard choice to take things to court.
Cryptocurrency as an investment
According to CNBC, more than 20 million Americans may own cryptocurrency and this young digital currency market rose in value to $2 trillion in 2021. The ledgers keeping track of the currency, known as the blockchain, have many redundancies and encryptions that make it hard to fake or defraud. Its niche market has only recently seen governments create policy to regulate it. Depending on the market, the value might boom in your favor unexpectedly—alongside the risk of a market dip.
Cryptocurrency as marital property
All of this might make it an interesting investment for you or your spouse. In a perfect world you are both transparent about how much cryptocurrency you both have. Some, however, find it tempting to hide funds using crypto wallets and confusing account tactics. Uncovering information on cryptocurrency accounts may be prohibitively expensive if it comes to court.
If your divorce involves cryptocurrency, there may be ways to avoid headaches during property division. Mediation aims to facilitate clear communication and honest discussion over how best to split marital assets. Cryptocurrency may bring some digital hiccups to the table, but it is almost always preferable if you and your spouse agree on how to divide it.