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Cryptocurrency: A new divorce battle ground

With cryptocurrencies exploding in value over the past few years, they are becoming an ever-bigger issue in divorce proceedings. After all, what other asset class could balloon a thousand percent in value overnight. And, as they become more-and-more accepted as mainstream investments, dividing up crypto assets like Bitcoin is only going to become a bigger divorce battle ground.

A way to hide assets

In the past, spouses might illegally hide cash in a mattress or somewhere else during divorce to keep it away from their ex. As economies and banking systems evolved, hiding money off-shore, in the Cayman Islands or somewhere else, become a way to hide assets. Today, some high-net-worth individuals might try to hide funds in crypto assets, which  are currently not well-regulated or tracked, and do not have to be held on an exchange. Indeed, someone can transfer a large sum of money into cryptocurrencies, and then download it to a hardware wallet, which can look like a non-descript USB drive. Thhis has led to the ever-growing industry of forensic investigators that can track these currencies.

Timing is always an issue

Because of their highly volatile nature, cryptocurrencies can implode and explode in value quickly. This makes them extremely complicated to divide. If a divorce occurs over the course of a year. The value you swing in either way exponentially.

Not always a pot of gold

For our McAllen, Texas, readers, keep in mind though that not all that glitters is gold. People often misunderstand the value of cryptocurrencies this should be on the radar of every spouse that is thinking about a divorce. Even for those not thinking about a divorce though, it is a reminder to talk about the spouse’s holdings, including cryptocurrency and other e-assets.

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