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How is Cryptocurrency Divided in a Divorce?

When you divorce, all of your assets need to be divided up. This includes digital ones, including cryptocurrency. The law is not always great at keeping up with the latest technological advances, but we can say that for sure. If you or your spouse have invested in cryptocurrency, or “crypto” for short, it’s going to come up during the property division process. And if you’re looking for a fair shake during that process, you should consider talking to our Morris County, NJ divorce lawyers.

What is Cryptocurrency?

Cryptocurrency is not backed up by a bank or a country’s government like other, more conventional types of currency. It’s digital and decentralized, making it almost impossible to counterfeit. That can also make it harder to track.

You may have heard of Bitcoin, but that is really only the tip of the iceberg. Plenty of digital currencies have been introduced since cryptocurrency took off with investors.

Is Cryptocurrency Treated Like Any Other Property in Divorce?

Cryptocurrency is treated just like any other asset. If it was acquired during your marriage, it’s likely to be considered a marital asset. That means it gets split up during the property division process.

Crypto can fluctuate wildly in value. As a result, sometimes one partner wants to keep their investment. If you do not want to split your cryptocurrency with a spouse, then you probably are going to need to give up other assets. It’s up to you to determine if that is worth it to you.

Can Prenups Protect Cryptocurrency?

Because cryptocurrency is like any other asset, you can actually include it in a prenuptial agreement. You can decide that it will be split during your divorce or you can say that you came into the marriage with it so you will leave with it. The prenup gives you control over which assets go where provided that it’s a legally binding agreement.

Could My Spouse Be Hiding Crypto?

Because of its digital nature, it can be easier to hide crypto than it would be to hide other assets. If you have cryptocurrency, we do not recommend this though. You are obligated to reveal all of your assets when you get a divorce. Hiding money, even digital currency, can get you in a lot of trouble.

On the other hand, if you suspect that your spouse is hiding assets like cryptocurrency, you should tell your lawyer. We can do our best to uncover anything that your spouse is trying to hide so that you get a fair shake during the property division process.

Talk to a Family Attorney Today

You should not go through the divorce process on your own. An attorney from Townsend, Tomaio & Newmark can help you negotiate for fair agreements and help you ensure that your spouse and their attorneys are acting fairly. Contact our law firm and schedule a consultation with our team today.