Cryptocurrency is no longer the coin of the realm for just the 1%ers in our society. Figures from 2021 indicate that there are over 20 million people in the United States who have invested in cryptocurrency.
With the rise in digital currency purchases, it is inevitable that these cryptocurrencies will increasingly become issues in divorce cases. Learn why that could cost you plenty in your New York divorce.
To split it, you have to be able to find it
Typically, during the discovery phase of the divorce process, each spouse must reveal their assets and wealth streams. Most can be verified easily. But it is much simpler to valuate a spouse’s 401K than it is to determine whether your spouse made cryptocurrency transactions during your marriage.
Difficult does not mean impossible
Tracing digital currencies presents many challenges. But it can be done. If you suspect that some marital assets are tied up in the cryptocurrency markets, you next must decide whether it is worthwhile to trace its purchase and ownership.
Hiring the forensic accountant and computer specialist to pore over financial records and digital receipts on several devices is an expensive undertaking. If you suspect your spouse’s investment will be well over $10K, it may be prudent to follow that money chain to its digital destination.
But if they own $5K or less in digital assets, you may not even want to address the issue. Otherwise, you could spend more in fees than you get in return.
Get your fair share of the marital pot
Don’t walk away from your marriage for less than your entitled share of the marital property. Learning more about the rules that govern divorcing couples in our state is a winning strategy.