Cryptocurrency emerges as a contentious divorce issue

As cryptocurrency becomes a more popular investment for people in California and across the country, it is also becoming a growing issue in a divorce. Bitcoin was launched in 2009, but the values of cryptocurrencies have soared in recent years as have the different types of coins available on the market. In many cases, cryptocurrency holdings can become a significant factor in high-asset divorces as one of many valuable items of property to be divided. Some people have also alleged that their former spouses are using cryptocurrency technologies to hide assets from family court.

When cryptocurrencies are involved, some divorces may become longer with increased attention necessary to asset investigation and verification. Of course, it is also possible to conclude an amicable divorce that includes a cryptocurrency distribution. However, when spouses are locked in a battle over asset division, cryptocurrencies can play a role. This is especially true for undisclosed or hidden transactions. While some online exchange purchases are easily taxable, other direct purchases can be more difficult to track, especially if the crypto assets are not disclosed to the IRS by the holder.

People can try to hide assets from the IRS and from the family court, but the penalties for this can be significant: The other spouse may receive a larger share after the malfeasance was discovered, and tax penalties can be high. Other issues can emerge even when everyone is fully transparent about their holdings because it can be difficult for both parties to agree on a fair valuation of cryptocurrency assets.

High-asset divorces can be complex when there are significant sums at stake for both spouses. A divorcing spouse may work with a family law attorney to help protect key assets and work to achieve a fair settlement on major issues, including property division and spousal support.

No Comments

Leave a comment
Comment Information
  • Santa Clara County Bar Association
  • The State Bar Of California
  • San Matero County | Bar Association
  • The Bar Association of San Francisco

Tell Us How We Can Help

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Laughlin Legal, PC
950 Tower Lane
Suite 1225
Foster City, CA 94404

Phone: 650-389-9133
Fax: 650-292-2233
Foster City Law Office Map

Oakland Office
317 Washington Street
Oakland, CA 94607

Map & Directions

Laughlin Legal is proud to support events and special causes in our community
Click on these images to learn more about these events