Dividing assets in a divorce used to be fairly straightforward, or at least seem that way. However, when cryptocurrencies emerged as viable investments, it was a game-changer.
Many people erroneously believe that cryptocurrency sales and purchases are untraceable. While that is untrue, these purchases do remain elusive unless the other spouse knows what to look for in a Maryland divorce.
It is more than stashing assets
Now, over 20 million United States residents have cryptocurrency holdings as part of their overall investment portfolios. In divorce, the volatility of even the known crypto holdings makes them challenging to value.
Market volatility is very high right now regarding cryptocurrency and even more traditional investments. That can make it difficult to get a sense of its true worth. For example, when the divorce was filed, crypto earnings might have hovered around the $500,000 range. International events since then may have caused the market to drop off, meaning that what you own jointly as a Maryland couple now might only be worth $200,000.
Before the divorce is finalized, the scales could pitch wildly in the other direction, necessitating a recalibration of the value of your holdings.
How to handle splitting your cryptocurrency
To get your fair share of the crypto value, you need someone who is intimately familiar with cryptocurrency and its worth on the volatile markets.
This essential volatility can make it necessary to repartition other, more stable assets over the course of the divorce. This means that when both partners are aware of these digital assets, there is less a need for a forensic accountant to ferret out the holdings and more need for legal guidance at the helm who understands the qualities of the assets.