Cryptocurrencies have been around since the Bitcoin was launched in 2009, and interest and awareness of cryptocurrency holdings have since increased. Cryptocurrencies have also become one of the many different types of assets that divorcing couples in Michigan need to decide how to handle.
Some family law firms might not have a sufficient amount of understanding of or experience with cryptocurrencies. Having to address issues around cryptocurrencies in a divorce can make the process much longer and more complicated.
It can be extremely difficult to valuate cryptocurrency assets because their prices tend to vary quickly. It is also very easy for individuals to conceal their cryptocurrency holdings. In many cases, in order to trace hidden cryptocurrencies, individuals will have to dedicate a significant amount of time and financial resources to the effort. However, locating undisclosed cryptocurrencies is not impossible, especially if the assets were purchased using online exchanges. It is when the assets are purchased directly from a holder and then moved offline that they can become essentially impossible to find.
Determining the actual worth of cryptocurrency assets is another hurdle to overcome in a divorce. It is not unusual for the value of assets to be set for the date when the divorce petition is filed. However, there is a growing consensus that using another date, like the date assets are to be distributed, is more suitable. Valuations of the cryptocurrency assets will have to be conducted repeatedly during as a divorce case progresses because cryptocurrency prices change so often.
A divorce attorney may litigate to help clients obtain the desired settlement terms regarding the division of high-value assets such as cryptocurrencies. The attorney may work to ensure that the rights and interests of clients are protected during the negotiation for the division terms of other types of marital assets.