Cryptocurrency, such as Bitcoin and newer versions like Dogecoin, can be effective ways of padding your financial portfolio. According to NerdWallet, cryptocurrency allows you to purchase services or goods. Account owners can also trade crypto for profit.
As an unregulated form of currency, some individuals may attempt to hide money in a high-asset divorce. Even when the owner of such currency discloses information about their crypto accounts, it can still make high-asset property division even more complicated.
Two challenges associated with cryptocurrency and property division
As we stated above, your spouse could use cryptocurrency to keep assets out of property division. Other problems such currency can cause during a divorce include:
- Unstable value. The price or value of cryptocurrency fluctuates quickly and widely. For example, the value of Bitcoin has been known to fall drastically in just a few hours. Since the trading of these currencies occurs around the clock (unlike regular trading, which has a closing time), it is hard to place an accurate value on such accounts.
- Cash conversion. You cannot walk into a bank and withdraw cryptocurrency. Typically, the owner must sell the crypto to another party and withdraw the money via a payment method. Most people choose to have the cash value deposited into a bank account. Often, it takes time to complete this process, and because of its unstable nature (as previously mentioned), you are never sure what you get until you complete the sale.
If cryptocurrency is a factor in your Charlotte, North Carolina divorce, consider reaching out for assistance. Make sure you understand what crypto is and how the state handles virtual currency. A family court may be able to offer you some additional guidance in dealing with cryptocurrency.