Over the past few decades, divorces have changed, especially when it comes to the property subject to division during this process. As such, one of the most common questions divorcing couples have is how their digital assets, particularly any cryptocurrency they own, will be divided when assets are split. If you own digital currency, the following blog explores what you should know about the division process, as well as the importance of working with a Monroe, Louisiana property division lawyer to explore your rights during this process.
What Is Cryptocurrency?
Cryptocurrency is a form of currency that exists solely in the digital realm through cryptography, which is a technological process used to secure digital data. Unlike cash or coins, crypto has no physical form attached to it, making it a digital asset. Additionally, unlike traditional currency, crypto’s value continually changes as it is not part of a centralized banking system. In many instances, the nature of this asset is very volatile, as there are a number of factors that can influence its value.
Crypto is commonly mined, which means that computers solve advanced mathematical equations to produce the coins. However, they can also be purchased from brokers.
How Do Divorce Courts Handle This Digital Asset?
During a divorce in Louisiana, it’s important to understand how certain assets are handled. In most instances, you’ll find that only marital assets are subject to division. Essentially, this means that any property obtained during the marriage, regardless of whose name it’s under, is considered to be the property of both spouses and, as such, will be divided between the two parties.
Once marital assets are determined, they will be divided according to Louisiana’s community property laws. This means that all joint property will be divided evenly among both spouses, regardless of their contribution to the marriage.
As such, if you or your spouse purchased cryptocurrency after your marriage, it is considered marital property and will be divided between you both. However, it’s important to understand that valuing crypto can be difficult, again, due to its constantly changing nature. The court will generally try to determine its value on the date of your separation and use that as a means of dividing the asset.
It’s also important to understand that, due to the technology used to secure and verify transactions, crypto can be easy to hide and hard to trace. If you have reason to believe your spouse has hidden this asset from you, it’s imperative to inform your attorney.
At Breithaupt, DuBos, & Wolleson, LLC, our dedicated legal team understands how difficult these matters can be. That is why our team is committed to helping you secure the best possible outcome for your divorce. When you need assistance, especially in complicated matters like the division of cryptocurrency, do not hesitate to contact our team today.