Marital assets fall under different definitions in different states and those states have various ways of dividing those assets. Colorado is an equitable distribution state, meaning that the courts attempt to divide your marital property and assets in a way that is fair but not necessarily equal.
Cryptocurrency is a new form of digital asset. As the name suggests, it’s a currency like the dollar but its value fluctuates erratically—making it an attractive high-risk, high-reward investment to some.
Who owns cryptocurrency?
Anyone may own cryptocurrency if they have the tools to acquire it. Some build special computers designed to “mine” cryptocurrency while others speculate and trade it like the stock market. According to CNBC, over 20 million Americans own a cryptocurrency.
Whether you or your spouse invests in it, this form of asset has digital encryptions that make it difficult to trace by design.
How do courts divide cryptocurrency?
Despite how cryptocurrency may be new and confusing, it might still qualify as a marital asset. If that is the case, courts divide it like any other. If your spouse has a crypto wallet, the courts may give you property of an equivalent value. Or perhaps you open your own crypto account and divvy up half of your spouse’s cryptocurrency like a stack of cash.
Can people hide cryptocurrency?
Because cryptocurrency is so difficult to trace, spouses may often avoid reporting their crypto assets during a divorce case. Investigating this sort of perjury requires forensic accountants who specialize in following the money.
The more things change, the more they stay the same. Despite this new digital trend, the courts have the power to divide any cryptocurrency assets if your marriage has any. Researching more about cryptocurrency may help you if you or your spouse invests in it—especially if you suspect your spouse invested in some without your knowledge.