As cryptocurrency becomes more common, many divorcing couples face questions about how to divide Bitcoin, Ethereum, NFTs, and other digital assets. These assets can be complex because their value changes rapidly, and they are often harder to locate than traditional bank accounts.
At Martine Law, we help clients understand their rights and protect their financial future when digital assets are part of a divorce.
What Is Cryptocurrency and Why Is It Part of Divorce Negotiations
Cryptocurrency is a form of digital currency that exists only online. Unlike traditional money, it is not issued by a bank or government. Instead, it is stored in digital wallets and tracked on a blockchain, a secure online ledger. Popular examples include Bitcoin, Ethereum, and Litecoin.
Because cryptocurrency is valuable and can be bought, sold, or traded, it is considered property under North Carolina law. If either spouse purchased or invested in cryptocurrency during the marriage, it is typically classified as marital property and must be disclosed in divorce proceedings.
This means cryptocurrency can affect:
- The overall division of assets in your divorce
- Settlement negotiations, especially if one spouse invested heavily
- Financial planning, since crypto values fluctuate
Understanding how to identify and value cryptocurrency is critical to ensuring a fair divorce settlement.
Equitable Distribution in North Carolina
North Carolina is an equitable distribution state, which means marital property is divided fairly, not necessarily equally. Marital property generally includes:
- Assets acquired during the marriage, regardless of whose name is on them
- Investments, savings, and retirement accounts
- Cryptocurrency and digital assets purchased during the marriage
The court considers factors like each spouse’s financial contributions, earning potential, and debts when dividing assets.
How Cryptocurrency Is Classified
Digital assets are classified as:
- Marital property: Acquired during the marriage and subject to division
- Separate property: Owned before marriage, or acquired as a gift or inheritance
- Mixed property: A combination of marital and separate funds
Cryptocurrency purchased during the marriage is typically considered marital property, even if it is held in one spouse’s name.
Challenges of Dividing Cryptocurrency
Cryptocurrency and digital assets create unique challenges in divorce cases:
- Valuation issues: Prices fluctuate daily, making it difficult to determine fair value
- Hidden assets: Cryptocurrency is often stored in private wallets or on exchanges, which makes tracing harder
- Tax considerations: Selling or transferring cryptocurrency can have tax consequences
- Security concerns: Protecting passwords, keys, and exchange access is critical
An experienced attorney can work with forensic accountants to uncover hidden cryptocurrency and ensure accurate valuations.
Why You Need a Lawyer Experienced in Digital Assets
Dividing cryptocurrency requires more than basic divorce law knowledge. At Martine Law, we:
- Identify and trace digital assets, even in complex situations
- Work with financial experts to ensure accurate valuation
- Negotiate fair settlements that account for market volatility
- Help you secure your digital investments
What You Should Do if Cryptocurrency Is Involved in Your Divorce
If you or your spouse own cryptocurrency or digital assets, it’s important to:
- Disclose all assets honestly – hiding cryptocurrency is illegal and can hurt your case
- Keep records of all purchases, transfers, and account access information
- Work with professionals who understand digital assets
- Plan for taxes that may arise from selling or transferring crypto
Key Takeaways
- Cryptocurrency acquired during marriage is typically marital property in North Carolina.
- Digital assets require accurate tracing, valuation, and careful handling in divorce.
- Working with a family law attorney and financial experts is essential for a fair settlement.
Call Martine Law Today
If you are going through a divorce involving cryptocurrency or digital assets, contact Martine Law today. We will help you uncover assets, protect your interests, and achieve a fair resolution.
Call us for a confidential consultation.
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