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Challenges associated with dividing cryptocurrency in a divorce

On Behalf of | Aug 17, 2021 | Divorce |

Estimates suggest that millions of Americans across Texas and the rest of the United States currently own cryptocurrency or digital currency. Because digital currency may hold considerable value, it is increasingly becoming a point of contention in modern divorce cases.

Because digital currency is relatively new, there is not much of a precedent set in terms of how former couples might go about splitting it when their marriages end. Instead, many former couples encounter challenges when trying to divide and move around their digital assets. What are some of the challenges associated with splitting up digital currency in a divorce?

Evaluating it

On, say, Monday, the value of the digital currency may be entirely different from its value by Friday. For this reason, many former couples struggle to figure out exactly how to split the digital assets they hold. Former couples may be able to get around fluctuating cryptocurrency values by using some type of volatility formula that takes into account these fluctuations.

Transferring it

Transferring cryptocurrency from one spouse to the next may prove more difficult than transferring retirement benefits or other assets. Cryptocurrency exchanges may have little experience in this area. They may, too, only have a few staff members devoted to this side of the business. In some cases, transferring cryptocurrency may require the help of a financial professional.

Splitting digital currency may prove challenging. However, it may hold quite a bit of value, so it is wise to take the time to learn how to do it right.