Dividing Cryptocurrency in Divorce: What You Need to Know

Cryptocurrency is no longer a fringe asset—it’s a mainstream investment, and divorcing or separating couples must now figure out how to divide it. Unlike traditional bank accounts, crypto can be tricky to track, value, and split. Here’s what you need to know:

1. Finding the Crypto

Crypto isn’t always stored in a bank account; it’s held in digital wallets, sometimes offshore or on decentralized exchanges. Each spouse is required to share and disclose the Crypto account information with each other so that the transactions can be valued and distributed.

2. Valuing the Crypto

Because crypto prices fluctuate wildly, the timing of valuation is critical. In mediation, couples may use the value at separation, settlement, or another agreed-upon date. It’s important to find a date that works best for both spouses so that you can draft a fair agreement.

3. Dividing the Assets

Options for division include:

• Direct Transfer – Some cryptocurrencies allow easy wallet-to-wallet transfers.
• Buyout – One spouse keeps the crypto, while the other gets an equivalent cash value.
• Liquidation – Selling the crypto and splitting the proceeds, though tax implications must be considered.

4. Tax Considerations

Crypto sales may trigger capital gains taxes, so couples should factor this into their mediation. It’s a good idea to check in with your tax professional to prevent unpleasant surprises.

Final Thoughts

Cryptocurrency adds complexity to divorce, but in mediation, it can be fairly divided. If you’re dealing with crypto in your divorce and need help reaching a solution together, mediation is the best option.

Need help navigating your divorce? Reach out to explore solutions that work for your family. If you would like more information about the divorce or separation mediation process, please schedule a free chat or a consultation at http://clementmediation.com

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The information provided does not, and is not intended to, constitute legal or financial advice; instead, all information, content, and materials available on this site are for general informational purposes only. No attorney-client relationship is formed, advice from your own attorney or financial professional is encouraged.