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How will the Texas courts handle cryptocurrency in a divorce?

On Behalf of | May 17, 2021 | Property Division

Finding a fair way to split up your property is often a major concern in a Texas divorce. You and your spouse probably both have invested a lot of your time and income into the shared resources that you now need to find a way to split.

It can be difficult for couples to review their household finances and determine what is reasonable and fair. Some property is much harder to divide than others. Items with significant emotional value for either spouse can present a challenge. The same is true of property with unclear financial value.

If you or your spouse have purchased or mined cryptocurrency during your marriage, you aren’t alone. Researchers believe that roughly one in every ten Americans now owns cryptocurrency. You can expect your digital currency to affect the property division process.

The courts will look at cryptocurrency like any other financial holdings

Your digital currency could be worth thousands of dollars. If you acquired cryptocurrency during your marriage or used marital resources to procure it, the courts will likely treat it as marital property for the purposes of property division. Under community property laws in Texas, both spouses might have a claim to some of the cryptocurrency’s value.

How do you put a price on cryptocurrency without selling it?

Investments can be particularly tricky to handle during a divorce because their current value is only part of the consideration. You also have to think about their likely future value and impact on your future financial situation.

Cryptocurrencies are a perfect example of complex assets that could complicate your divorce proceedings. Understanding state law and your household’s finances will make it easier for you to plan for your divorce.