How cryptocurrencies figure into property division upon divorce

On behalf of Gary Kirk of Kirk Montoute LLP posted in High Asset Divorce on Monday, July 30, 2018.

The divorce process has changed drastically within the last few decades. And with those changes in Canada, couples who are divorcing may find themselves with a whole new set of issues when it comes to property division. With the advent of cryptocurrencies like Bitcoin, divorcing couples may be wondering how these assets play into the scenario when figuring out who gets what.

The thing is, cryptocurrencies aren’t overseen or produced by any governments, and only a certain amount will ever be available at one time. Those people who invested during the beginning of these currencies more than likely made a lot of money. So, what if that investment was made during the marriage? How is such a volatile asset looked upon by the courts?

The first thing to do is to ask individuals about cryptocurrency. A lawyer may be able to seek an undertaking that his or her client’s partner provide information about his or her cryptocurrency wallet, which then could be reconciled with bank statements to make sure these assets aren’t being hidden. Understanding this new technology is important, not only for separating partners but also for their legal counsels.

Property division is one aspect of divorce in Canada that can be confusing. A lawyer may be able to clarify many aspects of the law that seems unclear or erroneous in this respect. When those who are divorcing have a decent grasp on the legalities surrounding the divorce process, they may be able to move forward more confidently, knowing that their best interests are being looked after. 

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