Individuals who are getting divorced in New York are facing a relatively modern challenge when it comes to determining how to divide assets. Cryptocurrencies are creating a unique issue for divorce attorneys.
Cryptocurrencies first came on the scene in 2009 with the launch of Bitcoin. At that time, there was relatively little interest or concern surrounding it. Over the years, however, that has changed: Cryptocurrencies are now becoming an issue for divorcing couples looking to separate or divide assets. While this problem is relatively recent, it is expected that it will continue to grow over the years.
One of the reasons for the problem is that the majority of family law firms do not have a lot of experience with cryptocurrencies and don’t understand them. As a result, divorces involving cryptocurrencies are taking longer in some cases. One difficulty is that the value of cryptocurrencies fluctuates drastically. At the start of the day, a cryptocurrency can be worth a large amount and then lose a good portion of its value by the end of that same day. The second challenge is how easy it is to hide cryptocurrency assets.
Cryptocurrencies have made it possible for some individuals to accumulate a large amount of wealth from a small initial investment. Chasing down undisclosed cryptocurrencies during the divorce process is often time-consuming and expensive.
A family law attorney may advise their clients on how to deal with shared accounts. If cryptocurrencies or potentially hidden assets are a concern, the attorney may provide assistance on property division laws and asset valuation. They may be able to help their client deal with other practical issues that can arise during the divorce process.