What Happens to Cryptocurrencies in Divorce?

Asset Division and Non-Physical Assets

Cryptocurrencies are becoming more and more popular every day. As their value continues to rise, more people are investing in them. But what happens to cryptocurrencies in a divorce? How are they treated during the asset division process? In this blog post, we will explore how North Carolina courts treat cryptocurrencies in divorce and how you can make sure your investments are protected during a breakup.

Marital vs. Separate Property

Cryptocurrencies are a relatively new addition to the world of assets and property division in divorce. As such, there is little case law or guidance on how to handle them during a divorce. In general, however, cryptocurrencies will likely be treated as either marital property or separate property, depending on how and when they were acquired.

Cryptocurrencies that are acquired during the marriage will be considered marital property and subject to division between the spouses. Conversely, cryptocurrencies that are acquired prior to the marriage or outside of the marriage altogether will be considered separate property and not subject to division; separate property also includes anything that is gifted to or inherited by one spouse, even if the acquisition occurs during the marriage.

Challenges Unique to Dividing Crypto

Cryptocurrencies are unique assets that can pose a challenge when dividing them in a divorce. Unlike stocks or real estate, cryptocurrencies are not physical entities and do not have as many government regulations. This presents a few unique challenges when attempting to divide them fairly in a divorce.

First, it can be difficult to determine the value of a cryptocurrency. Unlike stocks, which have a set price on a given day, the value of cryptocurrencies can change rapidly and unpredictably. This can make it difficult to determine how much each spouse should receive.

Second, cryptocurrencies are often stored in digital wallets, which can be accessed by both spouses. This means that either spouse could potentially spend or sell the cryptocurrency without the other's consent.

Finally, cryptocurrencies can be used for anonymous transactions, making it difficult to track down who owns them. This can create disagreements between spouses about who should receive them.

Work with an Attorney

To protect your best interests and digital assets, you should work with an attorney who understands North Carolina law regarding asset division and who can defend your rights to your property. Know that you can turn to the team at Blood Law, PLLC to help you through your divorce and to keep your best interests at the forefront of the process.

Learn more about divorce in North Carolina by calling us at (704) 286-0570 or by visiting our website.