How Can Cryptocurrency Impact My Illinois Divorce?

 Posted on May 26, 2024 in Spousal Support

Financial assets are a major part of the divorce process. They need to be accounted for and divided between the spouses. They also play a role in determining which spouse pays family maintenance, such as spousal support and child support, and how much maintenance payments are. When making these decisions, a court will take into account:

• Bank account balances

• Investments

• Real estate

• Pensions

• 401Ks

But what about less traditional financial assets like cryptocurrency? Crypto is considered a financial asset and can impact divorce in several ways, which this article will discuss. If you are storing cryptocurrency, make sure to consult an Illinois divorce attorney who can walk you through your options.

Asset Division Can Be More Difficult

Both parties in a divorce are entitled to marital property. Illinois law defines marital property as assets that were acquired by either spouse during the marriage, with some exceptions. Dividing these assets in a divorce is tricky enough. But cryptocurrency makes asset division even more complicated because:

• Crypto is more volatile, meaning its value sometimes fluctuates rapidly.

• Crypto transactions in exchanges are harder to track.

If cryptocurrency is a marital asset that needs to be divided, a financial expert may be needed to help with the process.

Spouses Use Crypto to Hide Assets

Because crypto does not rely on third parties like banks and can be more difficult to track, some spouses use it to try to hide assets in a divorce. They do this by buying crypto with marital funds and then failing to disclose their crypto holdings to the court. This is illegal and referred to as the dissipation of assets.

Crypto Can Affect Family Maintenance

When couples get divorced, one party is often ordered to pay family maintenance. Family maintenance includes child support payments and spousal support payments, otherwise known as alimony. Before a court makes decisions about family maintenance, such as who should pay it and how much, the judge will look at several factors, such as:

• The needs of each spouse

• The needs of the child

• The duration of the marriage

• How assets were divided

• Who has child custody

One of the main factors that determines who pays family maintenance is the financial ability of each party. If you are holding significant funds in cryptocurrency and your spouse is not financially sufficient, you are more likely to be the one who is obligated to pay family maintenance.

Contact a Skokie, IL Divorce Attorney

Cryptocurrency can complicate the divorce process in several ways. It can also become costly if you need to hire a financial expert in addition to an attorney. Your best move would be to find a Rolling Meadows, Illinois divorce lawyer who is also a financial expert. Curtis Ross is both a highly experienced attorney and a certified public accountant who understands well how cryptocurrency affects divorce. Call The Law Offices of Curtis Bennett Ross, L.L.C. at 312-984-1514 for a free limited consultation today.