On behalf of The Law Office of Wickersham and Bowers posted in Family Law on Thursday March 20th, 2025.
Divorce often reveals individual personalities as spouses rush to protect themselves. One of the most contentious issues in divorce is property division. Cash and real estate are easy to divide because they can be valued. However, it’s hard to track crypto because its value fluctuates.
Florida law stipulates that any cryptocurrency bought during the marriage is marital property that should be split fairly. However, how do you find, value, and split the crypto properly?
Finding Hidden Cryptocurrency
Some people try to hide digital assets during a divorce. Since cryptocurrency wallets aren’t always linked to banks, crypto can be moved or stashed without leaving a clear trail. That doesn’t mean it’s impossible to find.
Here’s how attorneys and financial experts track hidden crypto:
- Bank and credit card records: Large withdrawals or payments to crypto exchanges.
- Tax returns: The IRS requires people to report crypto gains. Missing or inconsistent tax documents might hint at undisclosed assets.
- Forensic accountants: Follow digital footprints to trace where money has gone, including crypto transactions.
- Subpoenas to exchanges: If a spouse is suspected of hiding funds, legal action can force platforms to turn over transaction history.
Putting a Price on Crypto Assets
Unlike cash or stocks, cryptocurrency doesn’t have a fixed value. Courts usually pick a specific valuation date, such as the date of separation or the divorce filing, to set the value.
Some factors that go into valuation include:
- Current market price: What the cryptocurrency is worth at a given moment.
- Historical prices: Past transaction records may be useful if assets were moved before the divorce.
- Expert analysis: Financial professionals may be needed to determine fair pricing and predict future value shifts.
Splitting Cryptocurrency in a Divorce
Once the value is set, the next step is deciding the share each person gets. There are three main ways this is handled:
- Direct transfer: The crypto is split and sent to each spouse’s separate digital wallet.
- Asset trade: One spouse keeps the crypto while the other receives something else of equal value (like cash, stocks, or property).
- Sell and split: The crypto is sold, and both spouses divide the profits.
If you need help handling cryptocurrency in your divorce, contact Wickersham & Bowers today for expert legal guidance.
