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Considerations in divorce when one spouse has bitcoin

On Behalf of | Dec 28, 2017 | High Asset Divorce |

Some people in Pennsylvania who are getting a divorce might consider hiding any bitcoin assets. This is the advice provided on some websites for people who are divorcing due to the fact that if a person claimed to give away a bitcoin account, it would be difficult to trace.

However, even if a person does not try to hide bitcoin assets, there may be other complications in a divorce if one spouse has an account. The couple might need to make a decision about how to distribute the asset. There could be a choice between taking a percentage of the profits over a period of time or taking a lump sum immediately. They may also need to decide whether the account should be valued based on current market value or purchase price.

Bitcoin currency used to be little-known and not very valuable, but as its value increases, it may become more of an issue in divorce cases. The divorce itself could be caused in part by the bitcoin account since a person may have spent a significant amount of time on building the account’s worth.

Couples involved in a high-asset divorce may have a number of complications in property division whether or not there is a bitcoin account. If one or both persons own a business or part of a business, the spouse may also have a claim on that business. There might be valuable collections, complex investments and retirement accounts, all of which could present challenges in terms of how to assess their value and divide them. For example, a retirement account and a bank account could have the same amount of money in them, but the bank account could be worth more to a person who is able to withdraw from it without incurring any penalties or taxes.

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