In divorce, the objective is to separate two people’s lives in an equitable way. This often means dividing assets owned by both parties to allow each person to receive their fair share. When it comes to more complex assets, such as cryptocurrency, it can be very difficult to know how the court determines what is fair. There are several factors to keep in mind when dealing with cryptocurrency and divorce.
How Bitcoin, Ethereum, and Other Digital Assets Are Divided in Divorce
Those who use these types of digital assets may be utilizing one of the most advanced ways to build wealth and maintain assets. Yet, the court still sees many of these assets as marital property. That means that those funds must be divided in a way that is equitable. Cryptocurrency, including Bitcoin and Ethereum, is marital property when those investments are made during the marriage. This makes these assets the same as any other type of asset in your marriage.
It is important to note that equitable is not the same as equal. For example, digital assets in divorce are not split 50/50 in every situation. Rather, it focuses on what the court believes is a fair division of assets. Factors that contribute to this include:
- The length of the marriage.
- The income and earning capacity of each spouse.
- The current standard of living established for both parties during the marriage.
- The age of each spouse.
- The health of each spouse.
- The economic circumstances that play a role in each spouse’s ability to rebuild.
Once you learn how the courts divide cryptocurrency in divorce, you can begin to determine the best route forward for dividing those assets. Whenever possible, both spouses should devise a way to divide these assets to fit their desired outcome. Working with an attorney also helps this process.
Hidden Cryptocurrency
Transparency is critical when it comes to a Bitcoin divorce settlement or any other digital asset. The problem is that the whole premise of these currencies is that they provide anonymity. That does not mean your spouse has the right to hide assets from you.
As with any other situation, New Jersey cryptocurrency divorce laws require that each party provide an accurate and thorough outline of their income, assets, and debts. If the court learns that there are hidden assets, it can take measures against that spouse to recover the damages and, often, divide them in favor of the other spouse.
If you are unsure if there is a risk of this during your divorce and if hidden cryptocurrency could play a role in your overall future, seek out the help of our legal team. We will provide you with resources and support to investigate these types of situations. Our investigative team can track down many of the hidden assets out there, and that could play a role in your rights to compensation.
We do not recommend hiding crypto or any other assets during the divorce process. Doing so can be a costly loss. Instead, work with our legal team to carefully value those assets so that it is fully understood what your rights are, what your true worth is, and what strategies exist to protect your wealth. We also do not recommend coming up with a solution without our insight into these big decisions.
Protecting Your Digital Wealth in a High-Asset Divorce
Crypto has become a critical component of many wealth-building strategies. That is not a bad thing and should not be treated as such. Yet, the divorce process can be financially painful if you head into it without a plan and without the experience and support of a high-asset divorce attorney.
Our legal team is specifically focused on building a strategy that minimizes your risks of financial loss. Like with other investments, we consider more than just splitting those funds 50/50. For example, there may be tax consequences of withdrawing those funds now. Depending on the circumstances, it may not even be possible to do so. We look at all factors that play a role in this process to understand the opportunities and consequences.
To protect your digital wealth in a high-asset divorce, expect our legal team to work closely with you to understand your goals. You may be able to provide your spouse with other assets that could limit the impact on your digital assets. We work with you as well as your financial advisors to create a Bitcoin divorce settlement that is designed to be the best possible opportunity for you to move forward.
Every situation is quite unique. This is a type of asset the court looks for in high-asset divorces. By creating a plan with your spouse, it may be possible to preserve the long-term value of these assets as well as protect your financial future. If you own Bitcoin or other digital currency, let our attorneys know what you own and the current value. We will then work with you to better understand your legal options.
Why Working with a Skilled Toms River Divorce Lawyer Is Essential
As you take into consideration how divorce will unfold in your high-asset separation, know that having a skilled and experienced attorney by your side can be critically important. Our attorneys work closely with you to fully understand your rights and then devise a plan that works in your best possible interest.
Whether you both own such assets or just one of you does, be sure to include our legal team in your decisions. At Zeigler Law Group, LLC, Attorney Sonya K. Zeigler, Esq., and the team have the experience you can rely on to navigate these complex scenarios. We have helped many others go through the same process with success.
Contact Our Toms River Divorce Lawyers at Zeigler Law Group, LLC Today
Sonya K. Zeigler, Esq. and her team have a well-earned reputation for committed and fierce legal representation. Our Toms River divorce lawyers are here to provide you with the best possible guidance. Call Zeigler Law Group, LLC at 732-361-4827 or contact us online to schedule a free consultation. With offices in Toms River, Red Bank, Princeton, and Mount Laurel, New Jersey, we serve clients throughout Ocean County, Monmouth County, Mercer County, and Burlington County.