Cryptocurrency and Divorce!
Ceri Griffiths
Financial Planner for women divorcing CEOs/Millionaires ?? Spear's 500 ?? Soul Led ?? Discreet Due Diligence ?? Financial Abuse and Narcissism Qualifications
I want to make sure you understand what it is and what to be aware of in the divorce.
Cryptocurrency…
You might have heard of Bitcoin, is a digital currency that you can exchange in terms of goods and services online. You can actually trade virtual coins online and that's how a lot of people make money. It's the trading of digital currency online.
Should it be included in divorce? Yes, it's an asset.?
This is something that has to be disclosed by both parties. This means that if either party or both parties have Cryptocurrency, one of them tells the other, and it's included in the overall matrimonial assets.
But things are a little bit trickier with Cryptocurrency because it's virtual, it's not regulated by anybody specific. Because it's online, it's not controlled by any government, organisation or country. And therefore it can be trickier to pin down.
When your partner doesn't declare it, it gets a little bit more complicated because you might have to do some digging and actually bring it up.
How you would do that, is potentially by using a forensic accountant who could do some research and actually establish if the cryptocurrency exists.
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Using bank statements, looking at transactions that might've been made to cryptocurrency exchanges can be a way of doing that.
Cryptocurrency can change hands really quickly, so that can become quite complex and that's why forensic accountants could be really useful because of how quickly those things can move through. It can also fluctuate in value quite substantially.
Given the inherent risk of Cryptocurrency, if it's declared or once it is uncovered, it might be useful as part of your divorce discussions if the cryptocurrency represents a substantial or a reasonable portion of your overall assets.
It can be useful to have during your ongoing divorce negotiations, a discussion around moving those assets to somewhere less volatile. Until you've got to the stage where you know what's going to happen, what the agreement is going to be because a fall could have a substantial impact on the outcome both parties get.
So that's a Cryptocurrency, I'm going to get a forensic accountant along on my YouTube channel to discuss that more, so stay tuned.
Corporate Divorce Support Expert | Enhancing Workplace Productivity | Employee Well-Being | Divorce Coach | Discernment Counsellor | Principal of The Divorce Coaching Academy | Author | Speaker | Trainer
3 年Thanks Ceri Griffiths this is so important in the current climate especially as it comes under capital gains tax regs. So many people think they don’t need to declare it for tax. Not true. If you make more than ￡12.5 k gains it’s taxable. With crypto cards and PayPal now allowing you access to crypto it only going to get bigger