Digital currency is quickly becoming more popular within the economy. With the rise of its use, more people own large sums of cryptocurrency.
In a divorce, you have to divide all assets, which would include any digital assets you own, but the value of cryptocurrency fluctuates. That can make it tough to divide. CNBC explains you may need to consult with a professional who understands the digital currency market since it is such a specialty niche.
The biggest issue you will face is determining the value of your assets. How much your cryptocurrency is worth at the beginning of the divorce process may be completely different than what it is at the end. You just never know where it will go or what will happen within the market. Experts suggest that you include a volatility formula in the divorce agreement that will account for changes. The formula will let you alter the division of other assets to make up for any huge changes in the value of your digital currency.
You will also need to account for taxes, which can, again, impact the value. If you purchased the currency a while ago and have seen good growth, it will have taxes associated with it that you may have to pay upon dividing it. This will greatly impact the value.
Dividing digital currency is not as easy as dividing cash or other assets. Transferring any currency to the other spouse may not be as simple as you think. You may need to hire someone to assist with this process as well.
The good news is that cryptocurrency can be worth a lot of money and has the potential to grow substantially. That makes it worth considering in your divorce settlement.