December 27, 2022
Divorce is an emotional and complex circumstance. Contacting a lawyer regarding your divorce case is essential to uphold responsibility and care within your case. For families at odds with custody battles, division of assets, and considering spousal support, having an expert divorce attorney on your side makes a meaningful and impactful difference during a divorce proceeding.
Most investments are cut and dry when it comes to how to divide up assets during a divorce, but recently couples have taken a new avenue of investment and wealth by adding cryptocurrency to investment portfolios. For some marriages, this can load complications as there are delicate nuances to this new form of currency and many ways to invest it. It is both essential and time-sensitive to contact our expert lawyers at The Bellinger Law Office to represent your case during a divorce.
Cryptocurrency is a form of digital currency where decentralized authority records verified transactions. A decentralized authority means this currency is not subject to government or financial institution control. This unique form of currency is often associated with anonymous transactions conducted online. Still, they can also be used for legitimate purposes and to purchase major and minor assets for couples and families.
Cryptocurrencies are held in electronic wallets and can be bought, sold, or exchanged for goods or other currencies. Because cryptocurrencies are a relatively new phenomenon, their legal status is still being determined in many jurisdictions. In the United States, the IRS has classified cryptocurrencies as property, which may be subject to capital gains taxes.
Regarded as a high-risk investment, cryptocurrency may be subject to volatile swings in value over time. Depending on the circumstances and investment modalities, this type of currency may be considered separate property or marital property. If cryptocurrency is regarded as marital property, it will be subject to equitable distribution and divided between the spouses based on a number of factors. Factors can include each spouse’s contribution to the marriage, their economic needs, and their ability to earn income. As a result of these factors, the accumulation of cryptocurrency can become a contentious issue in divorce proceedings.
Indiana law requires that property division in a divorce must be equitable or fair to both parties. This does not necessarily mean that the division must be equal, but rather that it must be fair under the circumstances. The first step in dividing property is to determine which assets are separate property, not subject to division in a divorce. This can include property acquired before the marriage, gifts, cryptocurrency returns, and inheritances received during the marriage.
Once the separate property has been identified, a complete list of all marital assets and debts must be compiled. This includes property value and associated assets. For a lawyer, this will provide a starting point for negotiations between the divorcing spouses. If they cannot reach an agreement, the court will decide based on a number of factors, including the financial needs of each spouse and the contribution of each spouse to the marriage.
Cryptocurrency is becoming more and more common in divorces. Having an attorney who understands how to value and divide this asset is essential. You deserve an attorney who will fight for what is best for you. We understand the complex nature of cryptocurrency and will work diligently to ensure that you receive a fair settlement.
Contact our office today. We would be happy to discuss your case with you and answer any questions you may have.
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