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Cryptocurrency presents a new wrinkle in asset division

Divorce can be a complicated matter for people in Texas and across the United States. For people with significant assets to split, there may be little financial desperation; however, in a high-asset divorce, both parties are highly invested in protecting their wealth and emerging from the divorce with everything intact. One emerging aspect for property division in a divorce has been the rise of bitcoin.

Bitcoin used to be inexpensive and easy to mine from one's home computer. In 2017, however, the cryptocurrency shot up in value, and the legal implications of owning bitcoin have escalated along with it. In general, bitcoin can be considered an asset along with other types of cash and property owned by both parties.

One concern in divorces with significant assets is when one party conceals assets from the other. Because of the ease of bitcoin transfer and its lack of traceability, hiding BTC in a divorce can be a significant temptation. The rise in value of bitcoin also presents another concern, especially in regards to the valuation at which the cryptocurrency is assessed. If crypto is assessed at its current trading value, divided as an asset in itself or valued as of a specific set point, these types of valuations can have a significant impact on the bitcoin asset in a divorce.

Whether people are dealing with cryptocurrency, traditional funds, businesses or other types of investments, high-asset divorces can add an extra element of complexity to an already trying time. A family lawyer can provide important advice and representation to a person going through divorce in order to safeguard their assets and secure a fair settlement of the economic interests of the marriage.

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