What Do Bitcoins Have to Do with Divorce? In Some Cases, a Lot

One of the major concerns of anyone who is going through a divorce is how the assets will be divided. That question is sometimes straightforward and easy to answer, but other times, it is difficult and complex. One thing that is making this question difficult to answer is the bitcoin, the virtual currency. California residents who are going through a divorce might like to know how bitcoins may affect a divorce.

In some California cases, the courts have already started asking for bitcoin disclosures, but for the most part the court system is trying to figure out how to handle this virtual currency. With the ease of transfer, bitcoins are easy to move around to other jurisdictions, which could make the funds difficult to recover.

Another problem with spouses hiding funds using bitcoins during a divorce is that there isn’t any central company that is keeping track of bitcoins. Instead, the currency is traded in a peer-to-peer fashion that might make tracking down any bitcoins a spouse owns rather difficult. This fact alone highlights the importance of always staying on top of financial matters during a marriage, even if divorce isn’t on the horizon.

When you consider the worth of bitcoins, which in April was said to be $500 per bitcoin, the thought of a spouse hiding bitcoins during a divorce might be enough to make you sick. Anyone who is going through a divorce might need to determine if bitcoins are a concern for the divorce. Knowing how to handle the situation if the online currency is present might help you to get a more suitable divorce settlement.

Source: Vox, “Divorce lawyers worry about assets being hidden in bitcoins” Danielle Kurtzleben, Jun. 04, 2014