Divorce and cryptocurrency assets

New Jersey couples going through divorce are likely to have disputes over how their assets will be divided. Thanks to the increased popularity of cryptocurrency, a growing number of divorcing couples will have even more to consider during the property division process. Dealing with cryptocurrency assets can make the divorce process much more difficult and time-consuming.

Cryptocurrency is a type of virtual currency, as it exists online and is traded in transactions using blockchain technology. Because every transaction is linked to a private and public key, it is possible to trace each transaction to a single person. However, the transactions that occur in person can be easy to hide.

While cryptocurrency has existed for nearly 10 years, it only became mainstream in 2017 when the price of the bitcoin rose to $20,000 per coin. Since then, much of its value has dropped.

According to one survey, just five percent of Americans had cryptocurrency assets in 2018. However, 21 percent of the people who took part in the survey reported that they were thinking about including the assets in their portfolios.

An increasing number of divorce attorneys are having to address high-value cryptocurrency assets in divorce cases. Still, court forms that ask divorcing individuals to list their assets do not yet have cryptocurrency mentioned as a potential asset.

An attorney who practices divorce law may help someone obtain desirable divorce settlement terms, particularly those terms regarding how certain high-value and complex assets, like cryptocurrencies, are to be divided. The attorney might engage in litigation to compel an opposing party to disclose all hidden assets. If necessary, independent investigations may be conducted to located easily concealed assets like cryptocurrency. However, negotiation is often the best way to resolve disputes regarding property division.

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