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Cryptocurrency can spark conflict during divorce

On Behalf of | Mar 25, 2019 | Divorce

During the dissolution of a marriage in New Jersey, a couple may not agree on how to divide their money. One type of currency that may particularly spark debate in a divorce proceeding is cryptocurrency, like bitcoin. The reason for this is that bitcoin and other kinds of cryptocurrency have grown in popularity in recent years.

Cryptocurrency made its debut about one decade ago but did not become mainstream until 2017. That is when a single bitcoin began to cost $20,000. Around 5 percent of individuals across the United States owned cryptocurrency in 2018. Still, another 21 percent of people who responded to a survey said they wanted to buy this form of currency.

Although cryptocurrency is attracting more investors these days, the market is not regulated. In light of this, people who own cryptocurrency and choose to get divorced may end up facing major conflicts over cryptocurrency and, in turn, longer divorce processes. Specifically, some divorcing individuals might attempt to keep their cash hidden in cryptocurrency so that they do not have to divide it during their divorce proceedings. This is not legal, but some individuals may still do this successfully if they possess a deep understanding of how cryptocurrency works.

Cryptocurrency can certainly make the process of divorce more complicated. However, divorce proceedings that do not involve cryptocurrency can still be quite complex, particularly if the two divorcing parties do not see eye to eye on asset distribution. Fortunately, a divorce attorney can help a person who is ending his or her marriage to pursue the most personally favorable financial outcome when dividing marital assets in New Jersey.