A Florida divorce poses financial hurdles, including how to divide cryptocurrency assets. If you plan to divorce your spouse whose assets include bitcoin and other cryptocurrencies, you’ll want to check all financial records to determine their value. This includes previous cryptocurrency purchases, previous cryptocurrency sales and previous tax records.
What is the value of your digital currencies?
Keeping track of volatile values means that you may need to add a volatility factor into your ongoing divorce documents. For example, your spouse may have purchased 50 bitcoins for $900 each a year ago. Today, each bitcoin is worth thousands of dollars, and the price fluctuates wildly. It is impossible to know the value of owned bitcoins on the day of your divorce. You may need to find a divorce lawyer who understands cryptocurrencies to ensure that the proper division of your assets occurs.
How do you deal with taxes on cryptocurrencies?
In the beginning, digital exchanges did not send tax forms to cryptocurrency owners. Consequently, your spouse may have failed to report capital gains on bitcoin sales to the Internal Revenue Service. You could find yourself liable for sizeable back taxes years after your divorce. An experienced lawyer may ask your spouse to include a signed affidavit in your divorce decree stating that all taxes were reported and paid.
How do you transfer digital currencies from your spouse?
It may be beneficial to hire a financial planner who has a background in asset and property division in Florida. This will help ensure that the transfer goes smoothly. Do not share passwords or similar security information with anyone else.
If you and your spouse own sizeable assets, divorce likely involves complex financial matters. Tackle the situation by taking a few deep breaths, checking all financial documents and studying the latest cryptocurrency valuation before going into divorce negotiations.
