What Will Happen To My Cryptocurrency During My Florida Divorce?
Today, cryptocurrency is playing a role in more Florida divorces. Not too long ago it was considered a fringe investment choice. Nonetheless, it is considered an asset under Florida law. That means it’s subject to distribution when you dissolve your marriage. In this article, the Tampa, FL divorce lawyers at Faulkner Law Group, PLLC will discuss what happens to your cryptocurrency during a Florida divorce.
Understanding the marital estate
To understand what happens to cryptocurrency during a Florida divorce, you must understand two different concepts. The first is the marital estate. The second is equitable distribution. The marital estate includes any assets that were purchased during your marriage. This includes assets like real estate, businesses, retirement accounts, and (you guessed it) cryptocurrency. Unlike businesses, cryptocurrency is generally easier to place a value on due to exchanges that show how much the cryptocurrency is worth in relation to the U.S. dollar. While cryptocurrency may have seen its fair share of ups and downs over the years, it isn’t very difficult to put a number on. For that reason, dividing cryptocurrency during a divorce is relatively easy.
Equitable distribution and cryptocurrency
In the State of Florida, all assets that were acquired during the marriage are subject to equitable distribution during divorce. This means that any asset that was acquired during the marriage is part of the marital estate. That asset will need to be equitably distributed. This often entails making a 50/50 split of the assets, but that isn’t always the case.
During equitable distribution, cryptocurrency is treated the same way as any other asset that belongs to the marital estate. It is thus subject to equitable distribution. Unless your spouse signed a prenuptial agreement protecting their cryptocurrency from equitable distribution, the crypt will be divided as part of the marital estate.
While exchanges make it easy to determine the value of cryptocurrency at any given moment, rapid fluctuations in the crypto market sometimes make it difficult to track the value over the course of an entire marriage. The value may suddenly change due to any number of factors.
The valuation of cryptocurrency must be done correctly to ensure the fair distribution of marital assets. The experienced Tampa, FL divorce lawyers at Faulkner Law Group, PLLC can help with the process of determining the value of the cryptocurrency.
Digital wallets and hidden assets
Cryptocurrency tends to be harder to find than other types of assets. It is possible that a spouse could try to hide their crypto holdings from the other spouse. Cryptocurrency is held in digital wallets which can be more difficult to trace. Often, spouses are aware their spouse has a crypto wallet. In addition, some digital wallets are easier to trace than others. This can present a problem for divorce lawyers. If you suspect your spouse is hiding assets, you should mention this to your attorney.
Talk to a Tampa, FL Divorce Lawyer Today
Faulkner Law Group, PLLC represents the interests of Tampa residents during their divorce. Call our Tampa family lawyers today to schedule an appointment, and we can begin discussing your goals and concerns right away.
