Why Divorce Attorneys Should Always Ask About Crypto
By Duncan E. White, Owner
Inkpointe Divorce Solutions, LLC
Cryptocurrency has gained significant popularity over the years, and its value has continued to rise, making it an increasingly important asset in divorce cases. Therefore, it is important for divorce attorneys to ask their clients about cryptocurrency during the discovery process.
Cryptocurrency is a digital or virtual currency that is secured by cryptography, making it difficult to counterfeit or double-spend. It operates independently of a central bank and can be transferred directly between individuals. This means that it is easy to hide, making it a prime target for individuals looking to conceal assets during divorce proceedings.
Divorce attorneys should always ask their clients about cryptocurrency because it may be considered a marital asset and is subject to division during divorce proceedings. It is also important to note that cryptocurrency transactions can be difficult to trace, making it a complex and challenging process to identify, value, and divide.
By adding questions about cryptocurrency to the discovery process, attorneys can ensure that all assets are identified, valued, and distributed equitably. This can also help to prevent future legal disputes that may arise due to undisclosed assets or unanticipated tax liabilities.
In addition, divorce attorneys should consider working with a Certified Divorce Financial Analyst (CDFA®) who can assist in identifying, valuing, and dividing cryptocurrency assets. A CDFA can also provide expertise on the tax implications of cryptocurrency transactions and help to ensure that both parties receive an equitable distribution of assets.
Cryptocurrency has become a significant asset in divorce cases, and divorce attorneys must be proactive in identifying and valuing these assets. Otherwise, they could face a malpractice lawsuit down the road. Including questions about cryptocurrency in the discovery process can help to ensure that all assets are identified and distributed fairly, ultimately leading to a smoother and more efficient divorce process for all parties involved.
Don’t let Cryptocurrency intimidate you! Make sure to do the research necessary to bring these assets to light before it’s too late!
In today’s litigious world, you’ll be glad you did!
Duncan E. White is a Certified Divorce Financial Analyst (CDFA®) and has been a licensed financial advisor since 2010. He leads a Second Saturday Divorce Workshop each month for the benefit of those seeking information about the divorce process.
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Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. LPL Financial and Inkpointe Divorce Solutions do not offer tax, legal or mortgage lending services or advice.