The world has changed its approach and opinion to crypto-assets in the last few years. No longer associated with shady financial transactions, cryptocurrency has gone mainstream.
When divorcing, each couple is legally obligated to disclose all assets while undergoing property division.
What do you need to disclose to your spouse about your cryptocurrency?
When couples are divorcing, it is common for people to get carried away with emotions and to forget that they have a fiduciary duty to their spouse when it comes to marital assets. If one or both spouses are found to be hiding assets, it would lead to several possible penalties under the California Family Code. Full disclosure can help you avoid problems.
What cryptocurrency information should be disclosed in a divorce?
The secretive nature of crypto makes it helpful to disclose extra information that may not be required for traditional assets. Here is some important information to include in your disclosure:
- Helpful explanation: When one spouse doesn’t understand how cryptocurrencies work, it may be helpful to explain about blockchain technology and why it makes crypto anonymous.
- Access: It is important to provide information that is needed to access cryptocurrencies. Including websites or apps where the crypto is located and accompanying access codes.
- Which cryptocurrencies are held: There are numerous cryptocurrencies on the market today, and many more are being created daily. The unregulated nature of crypto makes it a market that has little to no barriers to entry. It is important to include which types of cryptocurrencies are owned.
When you have complicated assets to divide in a divorce can be helpful to have strong legal counsel that is experienced in property division by your side.