Divorce and Cryptocurrency in Georgia: What You Need to Know

More than ever, marital property is becoming complex. When filing for divorce, it is critical to be open and honest with the court about all of your assets, including any marital assets like digital currency. These are valuable parts of the division of property within a marriage. Because divorce and cryptocurrency in Georgia can be somewhat complex, it is wise to seek out the help of a local family law attorney to guide you through this process.

FAQs About Divorce and Cryptocurrency in Georgia

Cryptocurrency as Marital Property

In Georgia, property acquired during the marriage is considered marital property. It must be divided equitably between both spouses. If you acquired any type of cryptocurrency during your marriage, it is likely to be considered marital assets. That includes cryptocurrencies like Ethereum and Bitcoin. If either spouse invested in or acquired cryptocurrency during the marriage period, it is likely to be among all assets valued and divided as a component of the divorce.

However, understanding the division of these digital assets is a bit more complex in regards to divorce. Their values change often, and both spouses may not want the same level of access to those funds.

With the objective of equitable division of assets in divorce, it will be critical to work out an agreement with your spouse about the division of these assets. Or, the court will make these decisions for you in a way that it deems to be equitable (that does not mean equal).

Valuation Challenges

What makes cryptocurrencies challenging in divorce is their constant value changes. Cryptocurrencies are volatile, which means their value changes even as often as every day. That creates a specific challenge for equitable distribution of assets. More so, the value of this digital currency can grow substantially over time, which can also impact how the property is divided.

Once it is established that these digital currencies are present, the next step is to determine their value. In nearly all situations with substantial digital assets, it is best to have a formal valuation done. A cryptocurrency valuation in divorce in Georgia allows for careful consideration of the current market and value as well as long-term expectations.

Taxation Considerations with Digital Currency

Also, note that there are tax implications in some situations that must be factored into the division of assets. For example, transferring the funds from one spouse to the other could lead to serious taxation, depleting a significant amount of the account's value. Capital gains taxes may also apply in some situations.

Because this can significantly impact the value of the asset, it may be possible to enable one party to keep the cryptocurrencies and the other to receive other assets in exchange to reach an equitable division. This may mean working to find an agreement on the best route in your specific situation. Speaking to an accountant, financial advisor, and attorney could be wise during this process.

A professional appraisal of the value of your specific cryptocurrency can take some time but ultimately provides the best proof of value for division. By working with an attorney with experience in cryptocurrency asset division, you will be one step ahead of the process.

Hidden Assets and Tracking

One of the most challenging aspects of cryptocurrency beyond valuation is knowing these accounts are present. The premise of these investment strategies allows them to be hidden easily and transferred between one or more people with simplicity. It is not uncommon for some spouses to try to hide these assets.

It is never wise to hide any assets during a divorce. Doing so could lead to discovery, fines, and asset loss during the divorce proceedings. Hidden cryptocurrency in divorce is a growing concern. However, new methods and techniques are available to uncover these assets, which makes hiding them a much more significant risk.

If you believe your spouse has cryptocurrencies they are not disclosing, it is possible to seek them out. Some of the most common signs that these digital currencies could be in place include the following:

• Using cryptocurrency wallets, which allow for the transfer of funds to these accounts, is an indication of potential assets. Look for apps or programs on hardware devices like computers and smartphones.
• Lacking a financial footprint can also be another sign that a spouse could be using these financial tools. If there is limited evidence of financial accounts, transactions, and deposits, that could indicate a digital currency is being used instead.
• Unreported income and investments are also a consideration. If there is a discrepancy between what a person is reporting to the IRS as their income and the assets they own, that could be an indication of hidden assets as well.

Unlike traditional assets, cryptocurrencies are easily hidden and transferred. Considering that, it is critical to work with a legal expert who can trace these digital assets comprehensively to find any potential accounts and properly value them.

If you are the owner of a digital currency account, be sure to communicate that with your attorney. Your attorney will gather evidence and records to demonstrate the value and work to mitigate financial losses associated with these transfers.

Work with a Trusted Georgia Family Law Attorney for Guidance

The complexity of divorce and cryptocurrency in Georgia makes it critical for divorcing parties to work with a skilled and knowledgeable attorney. Not all attorneys will have the same access to tools and resources to find hidden assets or value them properly. Yet, this is critical to ensuring an equitable division of assets during your divorce.

To avoid risks and ensure you receive the best possible legal representation, seek out an experienced attorney. Call Georgia family law attorney Sharon Jackson to discuss your case and learn what your legal options are. As a dedicated, experienced, and aggressive attorney who has experience working with professionals, military families, and complex financial matters, you can trust Attorney Sharon Jackson with your case. Call (678) 436-3636 now to learn more about cryptocurrency division in Georgia divorces.