How Does Owning Cryptocurrency Affect Divorce?

How Does Owning Cryptocurrency Affect Divorce?

Cryptocurrency has become a major financial asset. According to data from CoinMarketCap, the total value of global cryptocurrency now exceeds $1 trillion. You may be wondering: What role will cryptocurrency play in a divorce case? The short answer is that Illinois treats cryptocurrency similarly to any other type of investment. At SAM LAW OFFICE LLC, our Illinois divorce lawyers are committed to providing solutions-driven family law representation. In this article, you will find an overview of the key things to understand about how owning cryptocurrency can affect a divorce. 

Cryptocurrency is Treated Like Any Other Financial Asset

Cryptocurrency has become a popular investment option over the years due to its decentralization and encryption features, which offer an alternative to traditional fiat currency. However, when it comes to divorce in Illinois, cryptocurrency is treated like any other financial asset. That is to say that there are no special rules and regulations for cryptocurrency. It can be deemed marital property, and it can be divided as part of a divorce. 

Cryptocurrency May Be Subject to Equitable Property Division in Illinois

Illinois is an equitable distribution of property jurisdiction. Equitable property division is the legal principle that requires marital property to be divided fairly during a divorce. An equal distribution is possible, but is neither required nor guaranteed under the law. If cryptocurrency is deemed to be a marital asset, it will be considered for the purposes of equitable distribution. Cryptocurrency—or more accurately, the value of the cryptocurrency—could be split up. 

Each Spouse Has a Duty to Make Financial Disclosures

A unique factor about cryptocurrency is that it is more anonymous than traditional investments. A spouse may be tempted to conceal their cryptocurrency holdings during the divorce process. Doing so is a serious violation of Illinois law. During divorce proceedings in our state, each spouse has a duty to make full and honest disclosure of their financial assets and liabilities. This duty is essential because it ensures that each spouse has a complete understanding of the other’s financial situation, allowing for a fair and equitable division of property. Failure to make a full financial disclosure can result in severe consequences, including direct sanctions or even the reopening of the divorce case in the future. 

Get Help From Our Illinois Divorce Lawyers Today

At SAM LAW OFFICE LLC, our Illinois divorce attorneys have the professional expertise that you can rely on. If you have questions about crypto and divorce, we can help. Contact us right away for a confidential review and evaluation of your case. With a legal office in Rolling Meadows, we provide family and divorce representation in Cook County and throughout the entire Chicagoland area.