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Addressing unique cryptocurrency problems related to divorce

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A couple getting a divorce in Georgia often has to divide marital assets that include joint financial or investment accounts and the home that was shared during the marriage. Even something like jointly accumulated debt is fairly easy to split since it’s not too difficult to document it. But when marital assets include virtual currency known as cryptocurrency, the process of divvying everything up can quickly become complex thanks to unpredictable values and other unique factors.

Further complicating matters is the fact that investments in the form of cryptocurrency can be difficult to track down, especially if a spouse decides not to disclose them. However,it’s not entirely impossible to discover assets of this nature. One financial expert reports being able to do so after a careful examination of bank statements. But this strategy won’t work if crypto transactions are handled offline or directly.

Figuring out the value of cryptocurrency can also be problematic because of the potential for dramatic price fluctuations. It’s also an asset with a value that can be significantly higher or lower by the time a divorce is finalized. Some states are going by the date the divorce complaint is filed to determine cryptocurrency value for the purpose of dividing assets fairly among both parties involved with a divorce. But because cryptocurrency is a passive asset, some legal and financial professionals believe using the date of distribution is more appropriate.

With high-value assets like cryptocurrency, an attorney may take the same approach they would when attempting to assess the value of artwork that needs to divided among divorcing spouses. This typically involves consulting with outside experts. With cryptocurrency, this may include digital forensic specialists and forensic accountants. As far as protecting cryptocurrency assets in advance, one option is to include a reference to digital currency in a prenuptial agreement.

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