Our lives have been completely changed with the advent of the internet, smart phones, virtual work and the likes. The next transforming element seems to be cryptocurrency. We can now clearly envision a World where all money is crypto based. And if you are married, anything financial will be part of a divorce so someone facing a divorce might very well need to be prepared to deal with cryptocurrency issues. The attorneys at the Law Offices of Gildin and Chapman can certainly assist you with this.
Does Your Lawyer Understand What Cryptocurrency Is?
First and foremost, if your divorce might include cryptocurrency, you need a lawyer who really understands what it is. Simply stated, a cryptocurrency is an electronic form of money. Unlike traditional money, however, cryptocurrencies do not require a third party such as a bank or government to mediate and verify transactions. Instead, cryptocurrencies are decentralized, meaning they are based on blockchain technology which ensures all transactions are occurring only between individuals and or entities directly, without that formal involvement of a financial institution such as a bank. That might sound a bit complicated, so think crypto as compared to traditional money as offering greater control over an individual’s finances, easier and faster to use, nearly impossible to encounter fraud and with less transaction costs. For instance, a traditional bank wire transfer can take days to clear, but a crypto transfer can be done in mere minutes. And crypto is not tangible – it is not a physical thing that one can put in their actual wallet or purse like a dollar bill or quarter.
Can Your Lawyer Find the Cryptocurrency?
Next, your divorce lawyer will need to know how to locate any cryptocurrency that is subject to being distributed during the case. This can be particularly challenging because there are so many different cryptocurrencies with so many ways that they can be held and stored. Remember, privacy is a big part of the foundation of cryptocurrency, so these assets are far from transparent. Thus, this discovery process is not straightforward. A lawyer can’t simply review traditional documents such as bank and tax records. Your lawyer needs to know how to creatively subpoena vast records and go very deep into documents, emails, text messages, bank and financial records that might lead to uncovering cryptocurrency assets. It is a bit like locating that ‘needle in the haystack’, but your lawyer needs to be able to find it.
Can Your Lawyer Assess and Evaluate Cryptocurrency?
Significantly, cryptocurrency is currently used much, much more as an investment asset than anything else. Thus, if your divorce might include cryptocurrency, you need a lawyer who understands everything about this highly specialized asset. Assessing the value of cryptocurrency assets can be extremely challenging because its value is extraordinarily volatile – it can swing up or down or both constantly. Thus, your lawyer will have to know at what date the cryptocurrency should be evaluated, so as to either limit one’s financial exposure or maximize one’s financial benefit – depending on whether you stand to lose or gain. Should it be the date the parties separated, the date the case began, the end date of the case when there is a trial or some other date? Only a highly skilled divorce lawyer can navigate those issues.
How Should the Cryptocurrency Be Divided During the Divorce Case?
With certain narrow exceptions, in New York marital property generally includes all property acquired by either or both spouses during the marriage, regardless of who is listed as the owner. Once marital property has been identified in a divorce case, the Court must then divide it up between the parties.
This task is called ‘equitable distribution’. ‘Equitable’ distribution of marital property does not necessarily mean equal distribution. Rather, the ‘equitable’ distribution of marital assets must be based on the circumstances of the particular case and the consideration of a number of factors. There are many of these factors for the Court to analyze and there is a catch-all category that also allows the Court to consider ‘any other factor which the court shall expressly find to be just and proper’. Thus, your lawyer must be much more than merely knowledgeable – they must be very creative and a fierce advocate for you.
In sum, for any person, going through a divorce is hard enough as simply an emotional, life changing event. That is why it is critical to have a divorce lawyer who can confront and succeed on all emerging issues such as cryptocurrency. You need to know that you will be financially protected, no matter the scenario.
