Roughly 30 percent of American adults under the age of 30 have invested in or otherwise used Cryptocurrency as recently as 2021. If you or your spouse has cryptocurrency holdings, it is important to understand how this will affect the division of property in your divorce.
Like any other financial asset, cryptocurrency can be considered separate property or marital property depending on when it was acquired and whether it is subject to a valid prenuptial or postnuptial agreement signed by both parties.
Cryptocurrency that qualifies as marital property is subject to New York’s equitable distribution laws and is divisible alongside other marital assets such as savings accounts, checking accounts, investment accounts, real estate, art and more.
This is not just an option for professional athletes and other celebrities hoping to cash in on the popularity of cryptocurrencies such as Bitcoin and Ethereum. Cryptocurrency received as employment compensation is divisible, whether it is part of a salary structure or used as a form of deferred compensation. Having a lawyer with experience dividing executive compensation and deferred compensation is crucial if your spouse has taken payment in the form of cryptocurrency.
Hidden assets are nothing new in divorce. It is common for spouses to attempt to drain accounts, “gift” money to loved ones or take other measures to keep money out of the view of accountants and attorneys.
Cryptocurrency is the latest way spouses are attempting to hide money before and during divorce. It is a natural fit for hiding money, as cryptocurrency’s decentralized nature makes it difficult to track down. Having an attorney on your side with experience resolving complex financial issues in divorce is an absolute must-have if you suspect your spouse holds cryptocurrency.
Lisa Zeiderman can uncover hidden assets and make sure you receive your equitable share of cryptocurrency assets as part of your divorce settlement. Call 914-488-2402 to schedule a consultation. She practices in New York City, Westchester and surrounding areas.