Owning cryptocurrency can be a fun way to invest your money in the stock market; however, if you are getting divorced, your crypto may be a source of contention during the division of assets process. With the high volatility of crypto, what was once a small investment may be valued much higher (or lower) than your original purchase price. Our Bergen County divorce attorneys share what you should understand about cryptocurrency investments and the divorce process.
CRYPTOCURRENCY
Cryptocurrency is a digital currency that is meant to be used as a form of payment for goods or services. With the rise in the value of cryptocurrencies, some view purchasing and holding cryptocurrency as a form of investment.
INVOLVEMENT IN THE DIVISION OF ASSETS
Your cryptocurrency investments will most likely be involved during the division of assets process, especially if you purchased crypto assets during your marriage. Similar to other intangible assets evaluated in the division of property process, the court will review the asset to determine if it is considered a separate or marital asset.
From there, your crypto assets will undergo valuation, and if they are considered marital assets, they will undergo the division of assets process. If you wish to exit your marriage with your crypto wallet intact, you should share that information with your divorce attorney so they can advocate for you to retain ownership of the crypto.
PROTECTION FOR YOUR CRYPTO INVESTMENTS
If you are unmarried and wish to protect your crypto holdings in the event of a divorce, you can include them in a prenuptial agreement with your future spouse. In your prenuptial agreement, the crypto investments can be specified as separate property in the event of a divorce, and you can retain ownership of these assets.
If you are married but want to protect your ownership of your cryptocurrency, you can meet with your attorney to discuss drafting a postnuptial agreement. Your attorney can help you prepare the postnuptial agreement, and you and your spouse can work over the terms together. If the postnuptial agreement is signed and filed appropriately, this contract can help the courts determine property ownership, including your crypto, during the division of assets process.
UNWAVERING COMMITMENT TO DELIVERING RESULTS
At Herbert & Weiss, LLP, we understand that the outcome of your divorce will affect the rest of your life. Our divorce attorneys are dedicated to advocating for your best interests throughout your divorce.
Are you divorcing and have cryptocurrency investments? Are you worried about what will happen to your investments? Schedule a confidential consultation with our team today by calling (201) 500-2151 or contacting us online to learn more about how we can protect you through thick and thin.