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Fairly dividing cryptocurrency and digital assets in a high-net-worth divorce could be challenging for you and your spouse. In Canada, even digital assets are considered shared, so they are typically divided equally. These same principles apply to all marital property.
The most challenging part of this process is accurately valuing and transferring digital currency, non-fungible tokens, media, or art. This step often requires the assistance of a legal professional to ensure these intangible assets are properly disclosed and fairly allocated. Learn more about the division of digital assets in a divorce and how the team of lawyers at The Riley Divorce & Family Law Firm could help.
Yes—all digital assets, including cryptocurrency, are treated as marital assets if they were acquired during the marriage. Both you and your partner must fully disclose these assets for valuation and equal division. However, cryptocurrency purchased before the marriage may be exempt. If you are in this situation, your divorce lawyer could make a recommendation based on your individual circumstances.
Accurately valuing digital assets is one of the most common challenges affluent couples experience in the divorce process. Because cryptocurrency’s pricing is so volatile, establishing a fair market value when you and your spouse separate could be complicated. Cryptocurrency transactions are recorded through blockchain technology, and your lawyer could use this information to help trace and price these assets. In cases involving significant amounts of digital holdings, our Canadian law firm may recommend hiring a forensic accountant or other specialist assign a fair value.
Once you and your lawyer determine the value of your digital assets, you could transfer a portion of the cryptocurrency into your spouse’s digital wallet or have the asset converted to cash and divide that equitably. Finally, you could choose to offset other marital assets with the cryptocurrency’s value.
Trying to divide cryptocurrency and digital assets on your own during a divorce can be challenging. Let an experienced lawyer from The Riley Divorce & Family Law Firm guide you through this complex process to help ensure a fair allocation of your property. We are available 24 hours a day to answer your questions. Call our experienced team right now to get started.
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