Tens of millions of Americans now have cryptocurrency investments. But what happens to these intangible assets in a Florida divorce?
Cryptocurrency assets are not as untraceable as people once surmised. Granted, the process of identifying and evaluating crypto assets is more complicated than splitting the retirement benefits and bank accounts – but it can be done.
Cryptocurrency is incredibly volatile
Crypto markets are subject to much more volatility than most financial markets. What might have once been a $30,000 investment could soar to six figures or lose value entirely. Even over the course of a typical Florida divorce, this volatility can be a game changer.
One way to counteract the volatility of markets you cannot control is to implement a volatility formula into the asset-division process to offset extreme changes in the value of the crypto assets you and/or your spouse own.
Should you trade the house for the crypto assets?
Your divorce settlement should be designed to best represent your and your children’s needs. In some cases, that might mean signing off on the cryptocurrency in exchange for ownership of the family home (or vice versa).
Those decisions should be based on where you are on life’s ladder and whether you still have minor children under your care. Asking for a bigger slice of the retirement pie could give you leverage if your soon-to-be ex-spouse intends to keep their cryptocurrency investments.
Don’t be too quick to settle
Never agree to any property settlement offer in your divorce without first carefully weighing the pros and cons. Your financial and legal advisers can help you devise the most effective strategy for this next chapter in your life.