Millions of Americans now hold cryptocurrency or digital currency. As a result, it has become an increasingly hot topic in Illinois divorce cases. Cryptocurrency is often easier to conceal than other assets. Some divorcing parties are finding that their spouses conceal cryptocurrency to reduce how much they have to split with their former partners.
According to CNBC, not all parties navigating divorces know if their former partners hold cryptocurrency. Sometimes, sudden or dramatic lifestyle changes are a strong indication. Other times, divorcing parties may need a forensic accountant or similar professional to do some deep digging on their behalf. Those who suspect that their exes hold digital currency should get ready to navigate the following associated challenges during asset division.
Determining the value of said cryptocurrency
Digital currency, by nature, is volatile. Its value may fluctuate quite a bit from one day to the next. So, divorcing parties may need to get creative when it comes to figuring out how to divide their value. For example, parties may need to split their ex’s holdings using percentages, rather than actual dollar amounts.
Transferring cryptocurrency between parties
Digital currency is a relatively new part o the divorce world. Therefore, many people encounter challenges when it comes to transferring it to their former partners. A traditional investment company typically has protocols in place for splitting up assets amid divorce. Yet, many cryptocurrency exchanges are new and inexperienced in this area.
Sometimes, finding, evaluating and transferring cryptocurrency requires the help of financial or other professionals. However, divorcing individuals would be remiss not to consider these assets because they may hold significant value.