CRYPTOCURRENCY & DIVORCE IN MICHIGAN

by Van Den Heuvel Law Office

Divorce is a difficult process. It often involves dividing complex assets and determining child custody arrangements. However, it becomes even more complicated when one of those assets is cryptocurrency. Cryptocurrency is a decentralized digital asset that uses encryption techniques to secure transactions and verify the transfer of funds. In this blog post, we will discuss how cryptocurrency can affect divorce proceedings in Michigan and provide you with information to safeguard your interests.

What is Cryptocurrency?

Over the past ten years, cryptocurrency has become a popular virtual or digital asset. Its unique feature is the use of cryptography to secure and verify transactions. Unlike traditional currencies, it is not controlled by any central authority or government and is instead decentralized. This means that it is not subject to the same regulations or restrictions as traditional currencies. Bitcoin, created in 2009, is the most widely recognized cryptocurrency. Since then, numerous other cryptocurrencies, such as Ethereum and Litecoin, have surfaced. 

How is Cryptocurrency Treated in Divorce Proceedings?

Michigan law requires that all marital assets be divided equitably in divorce proceedings. Cryptocurrency, being a virtual asset, makes division a complex process. The first step in the division of cryptocurrency in a divorce is to establish its value. The value of cryptocurrency is determined by its market value at the time of the divorce proceedings. It is, therefore, essential that parties maintain accurate records of their cryptocurrency transactions and holdings.

In the event of divorce, cryptocurrency assets are divided fairly between both parties based on their determined value. The court may require one spouse to transfer a certain amount of cryptocurrency to the other spouse or sell the cryptocurrency and divide the proceeds accordingly.

What Should You Do to Protect Your Cryptocurrency Interests in Divorce Proceedings?

Divorce is a stressful time, and it can be easy to forget the importance of maintaining accurate records of your cryptocurrency holdings. However, this is vital if you want to protect your interests in divorce proceedings. You should also keep a record of all transactions involving cryptocurrency, including when you acquired it and how much you paid for it.

If you are a cryptocurrency investor, it’s essential to safeguard your assets in case of a divorce. This involves seeking the counsel of a capable legal advisor who can guide you through the process and ensure that your interests are well represented. At Van Den Heuvel Law Office, our team of skilled attorneys has extensive experience in handling divorce cases involving cryptocurrency investments, and we are committed to providing you with the legal support you need to safeguard your assets and achieve a favorable outcome. 

Contact an Experienced Divorce Attorney For Help

Cryptocurrency is becoming an increasingly popular asset, and it is changing the way assets are divided in divorce proceedings. It is crucial to maintain accurate records of your cryptocurrency holdings and transactions to protect your interests in divorce proceedings. Van Den Heuvel Law Office has experienced attorneys who can guide you through the complex process of dividing cryptocurrency in a divorce. Contact us today to schedule a consultation and ensure that your interests are protected.

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