How to Handle Bitcoin in a Divorce

If you have seen recent headlines about Bitcoin, you know just how popular it has become.  Bitcoin is a type of cryptocurrency, though there are numerous other cryptocurrencies as well.  Cryptocurrency investment works similar to investing in the stock market but because of the nature of cryptocurrency (virtual currency), and the fact that many transactions take place overseas, dealing with the disposition of cryptocurrency in a divorce can be very challenging.

Bitcoin and other types of cryptocurrency as very volatile.  Their value could plummet or soar from moment to moment. Spouses have a duty to disclose their assets in a divorce but cryptocurrency may be a long-term investment and thus, it is easy to potentially conceal the value of cryptocurrency investments in a divorce.  Further, because of the virtual nature of cryptocurrency and the fact that transactions take place overseas, it is easy to hide investments.  This can add to the stress and tension in a divorce.

If you are seeking a fair and even amicable divorce the best and most economical choice is to work with a mediator.  And, that is never truer than now concerning how to divide or otherwise decide the disposition of Bitcoin or other forms of cryptocurrency. One option might be to liquidate the cryptocurrency and divide the net sale proceeds equally or in some other agreed upon percentages. Another option might be for one spouse to buy the other out at an agreed upon price. Yet another option would be for both spouses to continue to co-own the cryptocurrency after the divorce unless and until they mutually agree to sell it. These and other options for the disposition of Bitcoin or other forms of cryptocurrency can be handled efficiently and economically during mediation as opposed to having two adversarial lawyers involved in deciding a fair disposition.