Cryptocurrencies and divorce
Part of the divorce process is to offer a “full and frank disclosure” of each partner's financial position.
This includes all notable assets, from property interests through to pensions. However, a term that has been cropping up more and more when discussing the divorce process in recent years is “cryptocurrencies”.
With the rise of crypto, your former partner or both of you may hold this as an asset and want to know whether this asset could be potentially divided. Within this article, we will discuss this topic and how our team of family lawyers are on hand to help you throughout your divorce.
All assets need to be considered as part of the divorce process
From the outset of this article, it's important to note that all assets should be put on the table regarding the division of assets during the divorce process.
Most divorcing couples are well aware that family homes can be divided during the divorce process in some circumstances. However, some separating couples may not be aware that other assets can be divided, such as cryptocurrencies, each partner's pension pots, and stocks and shares.
Issues arising from Cryptocurrencies
Cryptocurrencies can be problematic during the divorce process for two main reasons, first of all, cryptocurrency can complicate the divorce process because the value of this asset is often very volatile.
Another reason cryptocurrencies cause problems during the divorce process is that they can be hard to locate if one partner tries to hide the fact that they own cryptocurrencies at all.
Now, it might be the case that your former spouse has had a conversation with you that they were planning on investing in cryptocurrencies in the past. In which case, you know they exist; it is just a matter of obtaining how much they are worth and how much is held at the point of divorce.
However, on the other end of the scale, partners might not want the value divulged, so they might try to frustrate the divorce process by hiding the value they currently hold.
With our help and guidance, we can bring in forensic accountants and cryptocurrency specialists. These specialists can help you locate your partner's cryptocurrencies and determine their worth at the point of divorce.
Considered the same way as property
Your partner may state that they do not believe that cryptocurrencies should not be considered part of the divorce process at all.
However, under the governing laws in England and Wales, cryptocurrencies are considered as “property” during the divorce. This means that the value of the cryptocurrencies could potentially be divided by the rules set out in the Marital Causes Act of 1973.
Why it's always advised to be completely honest when filling out your “Form E.”
For those who do not know, Form E is the section where you fill out details about your current financial position during the divorce process.
You may be reading this article deliberating whether to state the value of your current cryptocurrencies.
We would say that it's best to be completely honest and fully disclose your current financial situation when filling out Form E and discussing your finances with your divorce solicitors as well.
If your former partner and their appointed divorce lawyers believe that you will be anything other than open and transparent about your financial situation, this could give rise to a protracted dispute between you and your partner and all of the solicitors involved.
It's important to note that attempting to conceal cryptocurrency assets can have profound implications, potentially leading to a more complex and contentious divorce process.
The stress this imposes on you, your former spouse and the whole family is often considerable.
Instead of potentially being able to reach an amicable settlement early-on outside of family courts, let's say using a method such as collaborative law, you may be forced to go through the family courts through a long and acrimonious divorce because an out of court settlement could not be reached.
The stress this will most likely impose on you and your family will be considerable; this is why we would encourage you to offer a full and frank account of your finances throughout the whole divorce process.
Do you require extra assistance and help?
Why not arrange for a phone call so that you can talk to one of our friendly and personable family lawyers today to discuss your divorce case?
