Cryptocurrency Challenges in Divorce Distribution in New Jersey
As Cryptocurrency Gains Popularity, More Divorcing Couples Need to Include it During the Asset Division Process.
There are many factors that go into the finalization of a divorce. One of the major procedures that can be the most complex is the distribution of assets. New Jersey is an equitable distribution state, which means that fair division of the couple’s marital assets depends on a number of points, including each partner’s income, earning potential, role in the marriage, age, health, and relationship with the children. Marital assets, which are those financial and property gains that occurred over the course of the marriage, are not simply divided in half. The same is true for cryptocurrency, which, if investments were made during the marriage, are considered marital assets. If you are in the process of divorce, contact a member of our team today to ensure that you receive the fair share of marital assets in the split, including cryptocurrency. Read on to learn more about how cryptocurrency is handled in a divorce.
Learning About Cryptocurrency in New Jersey
Cryptocurrency is an alternative digital currency that does not rely on any central banking authority. It is both a form of decentralized currency and an accounting system. Cryptocurrencies are digital assets that can be traded, much like other forms of investment. Because they are not backed by a standard marker like gold, the value of cryptocurrency varies.
Managing Cryptocurrency Distribution in a Divorce Context
Cryptocurrency is a relatively new phenomenon in the finance industry, and as such, the Superior Court: Family Part is still determining how best to work with cryptocurrency when it comes to a divorce. Basically, however, it is treated like any other financial asset. Like income and savings, investments, real estate, and antiquities, cryptocurrency must be taken into consideration for equitable distribution in divorce. Because the value of cryptocurrency varies, it is very important to get a quality appraisal of the value of your cryptocurrency as a marital asset in order to include it in the fair division of assets. This is one area in which having a trusted family law attorney cannot be overvalued. One of the functions and specialties of your divorce attorney is working with the correct experts to ensure that a first-rate assessment of assets is conducted in order to protect your hard-earned assets.
How is Divorce Disagreement Handled when Dividing Cryptocurrency?
As with many elements of a divorce, it often happens that a couple cannot decide how to divide cryptocurrency for the purposes of distributing assets. In this case, there are many options. Once a third-party appraisal of the cryptocurrency’s value as a marital asset is obtained, the couple can work together with the help of their divorce attorneys to strike a deal in which some other asset of a similar value is offered in exchange for the spouse’s deserved part. Because cryptocurrency, like other fluid investments, can change in value, this leaves a sticky situation for which it is absolutely necessary to have the guidance and representation of an experienced divorce lawyer.
Hiding Cryptocurrency During a Divorce
Hiding assets during a divorce is a dangerous game to play, and if found out, a New Jersey judge is likely to heavily favor your spouse in the division of assets. Remember that everything you invest in while you are technically still married, including cryptocurrency, is a marital asset. As such, your spouse has an equitable claim to the cryptocurrency. If you buy cryptocurrency in order to transfer funds from shared accounts or use funds that are subject to equitable distribution, you are taking a huge legal risk that will be heavily punished as it comes out.
Explore How to Handle Cryptocurrency and Asset Distribution with Our Montclair NJ Divorce Lawyers
The division of cryptocurrency in a divorce is one area in which the insight of a skilled New Jersey divorce attorney is invaluable. Because crypto is a young financial model, experiencing its own ups and downs and controversies, the value of cryptocurrency is a difficult thing to pin down. Our team of divorce attorneys at Montanari Law Group works with financial advisors and various other experts to appropriately appraise all of your marital assets. We stop at nothing to ensure that you have the best information at hand to match the best legal support by your side. We successfully work with separating and divorcing clients in South Orange, Millburn, Woodland Park, Ringwood, Totowa, Ridgewood, Montclair, Pompton Lakes, and towns in and throughout Northern New Jersey to swiftly finalize the divorce and protect fixed and fluid assets, so our clients can move forward with confidence. Contact us at (973) 233-4396 for a free and confidential consultation.