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How does cryptocurrency division work in a divorce?

On Behalf of | Jan 18, 2023 | Family Law

Cryptocurrency is an unstable market. It has seen amazing highs and terrible lows.

But if you own this digital currency, then it becomes considered in a divorce when you are dividing property. Unless you and your spouse make an agreement for only one of you to take all the crypto, you will have to figure out how to divide it. There are a few important points to keep in mind.

Nontraditional rules

Digital currency is unlike other assets you may divide. You cannot go about the process the same as you would with any other assets due to the characteristics of the currency. Simply transferring it to the other spouse can be tough. You need to plan for this roadblock.


The value of crypto is up and down. It can change drastically in one day, so figuring out how to value it for divorce asset division purposes is tricky. You have to account for this because you never know where the market may land when the time comes to do the actual division. Experts suggest including a volatility formula in your divorce decrees to help with the calculation of value.


Taxes further complicate the division of digital currency. These will change as the value changes, so you need to account for this in your agreement as well.

Cryptocurrency is a different type of investment. It can pay off big, but it also is rather risky. Because it is so unusual, dividing it during a divorce can be a challenge. You need to work into your divorce agreement points that will allow you to more easily account for fluctuating value, taxes and other details that specifically can complicate the division of this type of asset.