More and more often, couples who are divorcing have assets in the form of Bitcoin and other cryptocurrencies. This can pose an additional complexity when dividing assets, as many couples may be unsure of how their cryptocurrencies are valued and whether they are subject to division. If you have questions about dividing Bitcoin or another cryptocurrency in your divorce case, it is strongly recommended that you consult with a skilled attorney. At the Law Office of Heather M. Ward, we can answer all of your questions about dividing assets in a divorce.

Is Bitcoin Subject to Division? 

Massachusetts property division laws call for the equitable division of all marital assets in a divorce. This includes the division of all assets acquired by either spouse during the course of the marriage. As such, yes—Bitcoin and other cryptocurrencies are subject to division during a divorce. They may be exempt from division if it was gifted to one party through gift or inheritance. 

Disclosing Bitcoins in a Divorce

All marital and nonmarital assets must be disclosed in a divorce, even those assets that are not necessarily subject to division must be disclosed in a divorce. Failure to disclose the ownership of any cryptocurrency on your financial statements during a divorce case could result in penalties and negatively impact your divorce case.

How Are Bitcoins and Other Cryptocurrencies Valued in a Divorce?

If the cryptocurrency in question has an identifiable exchange rate, then it will be valued based on this rate when distributing assets in a manner that is equitable. If the cryptocurrency does not have an identifiable exchange rate, then it will be valued in the same way that publicly traded stock is valued. 

Keep in mind that when valuing cryptocurrencies in a divorce, the currencies are valued like property rather than other actual currencies, like the dollar. As such, there may be tax consequences associated with cryptocurrencies, such as capital gains taxes. 

The Challenges of Dividing Cryptocurrency in a Divorce

The biggest challenge associated with dividing cryptocurrency in a divorce is that it is much more difficult to value and actually divide than are other assets. As such, if cryptocurrencies are an asset in your divorce proceeding, it is strongly recommended that you work with a skilled attorney who has experience working on cases like yours.

Call the Law Office of Heather M. Ward Today

At the Law Office of Heather M. Ward, our experienced divorce and family law attorney can help you to understand the complexities associated with dividing cryptocurrency in a divorce, as well as your obligations associated with disclosing any cryptocurrencies in your possession. To learn more about Bitcoins and divorce in Massachusetts, call Attorney Heather M. Ward today at (617) 903-8955 or send us a message online today.