PLM Family Law

  1. Home
  2.  → 
  3. Divorce
  4.  → What is cryptocurrency and how does it affect your divorce?

What is cryptocurrency and how does it affect your divorce?

During the property division aspect of your divorce, there are a lot of assets and many ways to choose how you divide them between you and your spouse. While savings accounts and trusts might be easy to divide equitably in North Dakota, you cannot exactly cut your house in half.

It is the same in the space of digital marital assets. Cryptocurrencies, like Bitcoin, represent a niche but growing market that many married couples may face during divorce.

A new kind of money?

The US government backs up the US dollar, just like other nations back up their currencies. That is how they remain stable and valuable. Cryptocurrencies establish their value by being difficult to counterfeit through a decentralized network. If you have some digital currency, there is a market that believes in its value and there are specific, limited ways in dealing with it. As a speculative, often anonymous asset, cryptocurrency fluctuates wildly and represents a tempting investment—with big market booms like Bitcoin reaching market capitalization as high as $1 trillion, as US News reports.

A new kind of property division?

If you or your spouse invest in cryptocurrency, it is a marital asset like anything else. When dividing it, it is important to know what its current and potential value might be. If you wish to keep the entire crypto wallet, North Dakota courts may need to divide an equitable amount of property to your spouse. In the event of hidden cryptocurrency, the process may be expensive to uncover during divorce proceedings.

You have options when it comes to dividing this new and volatile asset. There are other resources you may lean on when learning more about cryptocurrency and its impact on your divorce.