It seems like almost every day something new is being discovered. From social media outlets to cryptocurrencies, our world is changing right before our eyes. But when our world changes with these new technological advances, so does our lives and as it pertains to cryptocurrencies, our divorces too. Because of this, it is important to understand exactly what cryptocurrencies are and how it could affect you if you are seeking a divorce. If you or a loved one is seeking a divorce, contact an experienced North Carolina divorce attorney to help you with your case.
Are Cryptocurrencies Subject to Divorce?
Before beginning, it is important to understand what cryptocurrency is before you are able to understand if it can be used in your divorce. A cryptocurrency is a medium of exchange, created and stored electronically using encryption techniques to control the creation of monetary units and to verify the transfer of funds. In smaller, more simple words, virtual currency. Because this currency now has legal recognition based on the North Carolina Money Transmitter Act, it has the potential to be made a part of your divorce settlement.
During a divorce, all property is identified as either separate property or marital property. Separate property is any property or assets that you had before being married, however, that which is considered to be marital property is subject to distribution at the time the divorce is finalized. Marital property includes any asset that is considered an investment if it was acquired during the course of the marriage and unfortunately, this includes cryptocurrencies such as Bitcoin. However, if these investments were purchased before the marriage it is considered to be separate property. The problem comes to rear its ugly head when that investment increases in value during the course of the marriage. In this case, the increased value may be considered marital property. With Bitcoin and other cryptocurrencies the price fluctuates regularly, and therefore, an attorney would be needed to help you determine the value of these virtual currencies.
Need Legal Advice?
As if the world isn’t complicated enough, virtual currency has now taken legal form and can be used in your divorce procedure. Though no one really knows if this is a good or bad thing, it is definitely a complicated matter that needs legal attention if you are seeking a divorce and in the event a spouse intentionally fails to identify this asset, you may be able to hold them liable in court. Because of this, if you or a loved one is seeking a divorce, contact an experienced North Carolina divorce attorney to help you with your case and to help you determine the best strategies for your situation. Contact The Law Office of Dustin S. McCrary we are here to help!