Over the past years, cryptocurrency has sudden gained its popularity not only in the gambling world. And with that, divorce cases are no exception.
As we go along with this post, we will walk you through the idea of cryptocurrency and how two separated individuals may handle it on their breakup.
Handling Cryptocurrency During the Time of Divorce
Always keep in mind that cryptocurrency is not actually a source of income, instead, it is considered as an asset. Including it in a financial report is crucial during the time of preparing for a divorce. Upon logging into your account, there will be a display of the current cryptocurrencies value that you have.
The reflected amount generally depends on the worth of cryptocurrency in the US dollars.
However, values can change by a large amount every day, so it’s important to keep this in mind when using the value shown on the financial reports of crypto transactions to divide property.
How to Figure Out the Community (Marital) Part of Cryptocurrency in a Divorce
Each state has its own rules about how to divide property.
Some states, like California, are community property states, which mean that goods owned by both partners are split equally. Most states are equitable distribution states, which mean that goods are shared fairly but not always equally. So, it is better to ask for the assistance of divorce lawyers Perth to have a better understanding of this distribution.
How to Decide for the Equal Cryptocurrency Distribution for Both Husband or Wife
When getting a divorce and at that time the husband has a Bitcoin inside his electronic wallet, the husband then need to decide for the fate of the Bitcoin.
Generally, there are three ways that they can do with it: transfer, cash out, and offset.
1-Transfer
The wife will need to set up an electronic wallet in order to receive the Bitcoin payment for her share. To get the Bitcoin, the husband will need the address of the wife’s bank.
Keep in mind that the wallet address for each coin you hold will be different. Then, the husband can send the Bitcoin to his wife either by giving it a value in US dollars or by choosing how much of the coin to send.
2-Cash Out
The wife thinks she doesn’t want to deal with the unstable nature of their joint cryptocurrency holdings and would rather sell her Bitcoin and get cash instead.
3-Offset
Wife thinks she would rather have a value offset for her part of the cryptocurrency. This means that the Bitcoin that husband is keeping needs to be given a value, and wife will get something else instead.
Final Thoughts
We’ve talked about moving cryptocurrency, cashing it out, and pricing it for an offset so far. There is no right or wrong way to handle marriage cryptocurrency; what you and your partner choose will depend on your own preferences. Also, it’s not either/or. Depending on what works best for you, you might want to do both a partial cash-out and a partial sale.
