Crypto a growing problem in divorce cases
There are few business transactions as potentially divisive as dividing up assets after a divorce, as Jeff Bezos is in the process of learning. And while Binance CEO Changpeng Zhao’s recent that Amazon will have no choice but to launch a cryptocurrency of its own got a lot of attention last month, that does not mean splitting crypto holdings will necessarily feature in Jeff and MacKenzie’s asset split. Nonetheless, cryptocurrency is becoming a big topic in the family law world.
“Cryptocurrencies have been with us since 2009 when Bitcoin was launched but have only recently become an issue for separating couples as awareness, values and media interest have soared,” says Mark Phillips, a partner in the British law firm Royds Withy King, which is has litigated at least three divorces in which high-net-worth individuals have cryptocurrency holdings to divide.
“These are the first cases we have seen, and we expect to see many more,” Phillips noted in a blog post last year.
That’s a problem, because few family law firms have much experience with or understanding of cryptocurrencies, according to a recent article by financial advice website Bankrate.com, which says that dealing with cryptocurrency assets “could make for a difficulty and lengthy divorce process.”
There are two reasons for this, both fairly obvious: the difficulty of valuing an asset in which prices fluctuate rapidly, and the relative ease with which cryptocurrency assets can be hidden. ..Read More..