With the help of blockchain technology, innovators are weaving a new financial market. More and more businesses are accepting virtual currency, traditional investors are starting to dabble in tokens, regulations are on the rise, and attorneys are beginning to explore the intersection between divorce and cryptocurrencies.
Cryptocurrencies: A Divorce Complication
Let’s start with the obvious: Cryptocurrencies complicate divorces. How? In short, blockchain technology’s decentralized nature makes hiding assets easier. And as anyone dealing with divorce knows, asset accounting is a top priority.
So what happens when divorcees convert cash into tokens and stash it? Similarly, what happens to crypto that a couple jointly bought during happier times? These are both questions that will increasingly start popping up in divorce cases.
People Can Trace Cryptocurrency Transactions
There’s a common misconception among token investors that all crypto transactions are completely untraceable because it’s encrypted and unregulated. That’s not true. With a little elbow grease and know-how, all crypto transactions can be traced to an individual.
More often than not, the people who can trace cryptocurrencies back to individuals are also the folks who can effectively hide transactions. Note: Folks actively looking to hide crypto assets favor in-person sales since they’re more difficult to track down.
Connect with a Cryptocurrency Lawyer
Many divorce lawyers are starting to consider the intersection of cryptocurrency and divorce. Our attorneys understand token transactions, mining, investing, and offshore tax sheltering.
If you’re a divorce lawyer working on a case that involves cryptocurrency, and you need a hand dissecting the ecosystem, feel free to get in touch. We have the experience and knowledge you may need to work through a cryptocurrency divorce issue.
We look forward to speaking. In the meantime, check out our cryptocurrency law blog.Connect with a Crypto Lawyer »