How are Cryptocurrency, NFTs, and Digital Assets Impacting Illinois Divorce Cases?

 Posted on April 08, 2022 in Main

Digital currencies have become an increasingly important component of investors’ portfolios. It is estimated that just under four percent of people own cryptocurrency, meaning there are more than 300 million people invested in digital currency across the globe. Cryptocurrency, NFTs, and other non-traditional assets are much harder to value and divide during divorce than other types of assets. Not only is cryptocurrency subject to volatile fluctuations in value over short periods of time, but these assets are also easy to hide from a partner during divorce.

Crypto May Be Used to Hide Assets

Digital currencies are not held in a bank, making them easy to conceal during divorce. Spouses who want to avoid sharing digital assets during their divorce may simply fail to disclose the assets on their financial disclosure form. Often, the best way to find hidden assets is to look for clues in financial documents like tax returns or loan applications. Forensic accounting and asset tracing may be needed to find cryptocurrency and other investments in a divorce.

Illinois law gives divorcing spouses the right to an equitable share of marital property. Cryptocurrency acquired during the marriage is marital property subject to division in divorce. If you suspect that your spouse is not disclosing all of his or her property during divorce, contact a skilled lawyer for help.

Determining the Value of Cryptocurrency and NFTs

NFTs, or non-fungible tokens, have recently surged in popularity. If you or your spouse own NFTs, you will need to value the assets before you can address them during property division. Often, valuable NFTs are handled like fine art in a divorce. NFTs cannot be divided, and it can be extremely hard to ascertain the value of an NFT because it is constantly changing. One option is to sell the NFTs and split the proceeds.

Bitcoin and other cryptocurrencies are also subject to fluctuations in value and can also be hard to address during divorce. Each case is different, so it is best to seek personalized advice from a skilled divorce lawyer.

Contact a DuPage County Property Division Lawyer

If you are getting divorced, contact the Wheaton divorce lawyers at MKFM Law for help. Our team is highly skilled in asset valuation and division. We regularly work with forensic accountants and other professionals to find hidden assets so that our clients receive the fair division of property they deserve. Call us today at 630-665-7300 to set up a consultation and discuss your case.

Sources:

https://earthweb.com/cryptocurrency-statistics