In the last several years, cryptocurrency has been in the news everywhere, from investment approaches to the rise and fall of digital currency and its growing popularity in banks and consumer markets. Perhaps you only heard about the joys and frustrations of cryptocurrency from your spouse.
You may be wondering what exactly cryptocurrency is and how it could affect you in a divorce. Here’s what you should know:
Digital investments in the future
Cryptocurrency is sort of like the stock market. Someone may put their savings into a digital coin and, over time, the value of their investments will rise and fall based on several external factors.
When someone wishes to cash out on their investments, presumably after the value rises, then their digital assets can easily transfer to any other digital form of currency, like a bank account or other cryptocurrency.
Cryptocurrency as a hidden asset
Those occasional times when your spouse talked about cryptocurrency may be some indication that your spouse has hidden assets. Cryptocurrency may be an asset you wish to have in a divorce that your spouse is trying to keep hidden from you.
Cryptocurrency, however, isn’t like the stock market in many other ways. This digital currency is harder to track down if it’s transferred from one digital wallet to the next. There is no transaction history for cryptocurrency, unlike with banks.
It can be harder for you to uncover hidden assets during your divorce, but cryptocurrency could be discovered in digital receipts, bank statements or documents for tax returns. If you believe your spouse may be hiding assets during the divorce process then you may need to know what legal steps to take to ensure you get your fair share of the marital proceeds.