Dividing assets during the divorce process is something that most Arizona family law attorneys deal with on a regular basis. However, they are facing a new issue. Cryptocurrency assets are presenting two specific challenges that throw a wrinkle into the equation during high-asset divorces.
The first challenge is actually knowing that they exist. Part of the appeal of cryptocurrencies is the fact that they can be hidden from others. One spouse could make an investment in cryptocurrencies without the other even being aware of it. Online transactions can be followed, but off-line transactions may be impossible to track.
The second challenge is determining the value of cryptocurrencies. This is something else that makes them appealing. A person could make a small investment and be a millionaire in a short amount of time. Since their value is based on the market, the value of cryptocurrencies can fluctuate overnight. It may be necessary to value the cryptocurrencies multiple times during high-asset divorce cases.
It is typical for assets to be valued on the date that a divorce complaint is filed. However, this may not be the best thing to do in all divorce cases where passive assets are involved. It may be advisable for assets to be valued on the date of distribution if one or both divorcing individuals has invested in cryptocurrencies.
When a person is going through a divorce and they have questions about cryptocurrency valuation and dividing assets, a family law attorney might provide advice on how to address these issues. The attorney may advise their clients on how to deal with financial issues that arise during the divorce process, as well as address issues concerning property division, dividing debt, and child custody.