Cryptocurrency in divorce will become more and more of an issue as time goes on. According to the Maryland General Assembly, property division falls under equitable distribution. Cryptocurrency is not an exception to marital property. This means a judge must rule on how to divide it fairly.
If you or your spouse has cryptocurrency, continue reading to learn tips about how it applies to divorce. Do not delete any records of its existence during your divorce.
Proving cryptocurrency exists
One of the complications cryptocurrencies bring to property division is proof of their existence. Your spouse may not be forthcoming about their finances. However, there are ways of knowing whether they own a significant amount of crypto. Most people use their bank accounts or credit card to purchase cryptocurrency. Your spouse’s financial records should show some indication of cryptocurrency purchases. It is illegal for your spouse to hide assets during property division, so they must prove they do not have significant investments in cryptocurrency.
Understanding taxes and how to transfer funds
Once the court rules on the cryptocurrency each spouse should receive, you must transfer or receive the specified amount. Make sure you understand how the assets affect your tax situation and how to receive a deposit of the given cryptocurrency. You may want to consult with a financial advisor who understands cryptocurrency.
Cryptocurrency makes divorce even more complicated because it is more difficult to identify them as assets and make an appropriate ruling on property division. Take careful records of your finances, and pay attention to your spouse when they mention cryptocurrency.