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Divorce becoming messier thanks to bitcoin

Going through a marital breakup can be both emotionally and financially overwhelming. This is true no matter how long a couple has been married or what the spouses' net worth are. However, the growing popularity of the bitcoin and other similar cryptocurrencies has been making the divorce process even more confusing for those in California and elsewhere.

One of the biggest issues facing those going through divorce is the possibility that one spouse is hiding assets in cryptocurrencies to avoid having to divide them as part of the divorce proceeding. Of course, this goes against divorce law, but it can still happen. Another major issue with bitcoin is the erratic swings in its price over the past couple of months.

Because cryptocurrencies have endured major price swings recently, valuing these assets can be challenging. For instance, if they are undervalued, a divorcing spouse may not receive a fair share of the couple's marital assets. On the contrary, if they are overvalued, a spouse might end up losing money down the road. After all, the pot of gold that a spouse may expect to find in the other party's cryptocurrencies may not exist in reality. This will no doubt present challenges in divorce proceedings in the years ahead.

Because divorce can be extremely complicated, making ill-informed divorce decisions is not uncommon. Unfortunately, the wrong decision may end up harming a divorcing spouse soon after the divorce or even years down the road. A qualified attorney in California can provide the guidance necessary to make wise decisions that will be personally beneficial both during and following the divorce proceeding.

Source: investopedia.com, "Bitcoin Is Making Bitter Divorces Even Messier", Shobhit Seth, Feb. 27, 2018

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