High-Net-Worth Divorce and Cryptocurrency in Orlando
Orlando is home to a growing number of professionals, entrepreneurs, and investors who have built significant wealth. Many of these individuals have embraced cryptocurrency as part of their financial portfolios. When divorce happens, the division of digital assets presents unique challenges. Unlike traditional investments, cryptocurrency is often volatile, difficult to trace, and subject to complex valuation concerns.
As an Orlando high net-worth divorce Attorney, I work with individuals facing complex property division issues, including cryptocurrency holdings. If you or your spouse hold digital assets and are going through a high-asset divorce, it is critical to have a legal strategy that protects your financial interests. Call me at 1-888-640-2999 to schedule a consultation and discuss your case.
Understanding Cryptocurrency in Florida Divorce Cases
Cryptocurrency is a digital asset stored on blockchain technology, often secured through encryption. Bitcoin, Ethereum, and other digital currencies have become valuable assets in high-net-worth divorces, creating legal questions regarding ownership, valuation, and equitable distribution.
Under Florida Statutes §61.075, all marital assets are subject to equitable distribution. However, the classification of cryptocurrency as either marital or separate property depends on when and how it was acquired:
- Marital Property: If cryptocurrency was purchased or mined during the marriage using marital funds, it is subject to division.
- Separate Property: If cryptocurrency was acquired before marriage or through inheritance and kept separate from marital funds, it may remain non-marital property.
The timing and manner of acquisition will influence how the court handles cryptocurrency in a divorce.
Challenges in Dividing Cryptocurrency in a High-Asset Divorce
Cryptocurrency differs from traditional assets like real estate or bank accounts in several ways. Below are some of the biggest challenges involved:
Locating and Identifying Cryptocurrency Holdings
One of the most complex issues in a divorce involving cryptocurrency is identifying whether digital assets exist. Unlike traditional bank accounts, cryptocurrency can be stored in private wallets, cold storage, or even hardware devices. Some spouses may attempt to hide assets by transferring cryptocurrency to undisclosed wallets or converting it into other digital assets.
As an Orlando high net-worth divorce Attorney, I work with forensic accountants and blockchain experts to uncover hidden assets and ensure an accurate financial disclosure.
Valuing Cryptocurrency for Equitable Distribution
Florida courts require an accurate valuation of marital assets before dividing them. Cryptocurrency presents significant challenges due to its price volatility. The value of Bitcoin, Ethereum, and other cryptocurrencies can fluctuate dramatically within days or even hours. Determining an appropriate valuation date is essential to ensure fairness.
Strategies for addressing this issue include:
- Using an average value over a set period
- Locking in a valuation date based on the filing or settlement agreement
- Adjusting for market changes through structured asset distribution
Tax Implications of Cryptocurrency Division
Cryptocurrency is subject to capital gains tax upon sale, meaning a spouse who receives cryptocurrency as part of a settlement may face future tax liabilities. Proper legal guidance ensures that tax burdens are fairly distributed when negotiating settlements.
Legal Strategies for Dividing Cryptocurrency in Divorce
If cryptocurrency is a significant part of a marital estate, there are multiple legal strategies to address its division:
Option 1: One Spouse Retains the Cryptocurrency
In many cases, one spouse may wish to retain full ownership of the digital assets. This arrangement requires:
- A fair market valuation of the cryptocurrency
- Offsetting assets such as real estate, investment accounts, or cash
- A structured agreement that accounts for potential value fluctuations
Option 2: Liquidating the Cryptocurrency and Dividing the Proceeds
Some couples choose to sell the cryptocurrency and divide the proceeds. While this simplifies distribution, it may result in tax consequences and lost future value if the asset appreciates post-divorce.
Option 3: Creating a Structured Settlement for Cryptocurrency Holdings
Given the volatile nature of cryptocurrency, a structured settlement can help ensure fairness. This may involve:
- Splitting holdings over time rather than in a single transaction
- Establishing a formula for post-divorce adjustments based on future value changes
- Placing cryptocurrency holdings in a trust for later distribution
As your attorney, I help evaluate the best approach based on your financial goals and legal position.
Legal Ramifications Under Florida Law
Under Florida Statutes §61.08, spouses have a duty to provide full financial disclosure in divorce proceedings. Cryptocurrency assets must be included in financial affidavits, and failure to disclose assets can lead to penalties, including:
- Contempt of court proceedings
- Reallocation of assets in favor of the non-offending spouse
- Potential criminal fraud charges if intentional concealment is found
Additionally, Florida law allows courts to impute income or assets if one spouse intentionally hides or devalues cryptocurrency holdings. As an Orlando high net-worth divorce Attorney, I take aggressive legal action to ensure my clients receive a fair and equitable outcome.
FAQs About Dividing Cryptocurrency in Florida High-Asset Divorce Cases
Can my spouse hide cryptocurrency to avoid division?
Cryptocurrency transactions are recorded on blockchain networks, which means they can be traced with the right forensic investigation. If you suspect your spouse is concealing assets, I work with forensic experts to track digital transactions and ensure full financial transparency.
How do courts determine the value of cryptocurrency in a divorce?
Courts consider fair market value at the time of valuation, but due to the volatility of cryptocurrency, a structured agreement or average pricing model may be used. It is essential to work with professionals to ensure an accurate valuation.
What tax implications should I consider when dividing cryptocurrency?
If you receive cryptocurrency in a divorce, you may owe capital gains tax when you sell it. Proper tax planning is necessary to avoid unexpected liabilities. I work with tax professionals to help structure agreements that account for these concerns.
Can I be awarded a larger share of marital assets if my spouse hid cryptocurrency?
Yes. Florida courts have the discretion to award a greater share of assets to a spouse if the other party is found guilty of concealing wealth. Courts may also impose legal penalties for non-disclosure.
Should I keep cryptocurrency or request a cash settlement instead?
The decision depends on your financial goals and risk tolerance. Cryptocurrency is a volatile asset, meaning its value may rise or fall significantly. If stability is a priority, negotiating a cash settlement based on the cryptocurrency’s fair market value may be a better option.
Do I need an attorney experienced in cryptocurrency division?
Absolutely. Cryptocurrency presents unique legal challenges that require specific knowledge of digital assets, forensic accounting, and Florida divorce law. I have extensive experience handling complex financial matters in high-net-worth divorce cases.
Contact Orlando Attorney Beryl Thompson-McClary at 1-888-640-2999 For A Consultation
Dividing cryptocurrency in a high-asset divorce requires careful planning, legal expertise, and financial knowledge. Whether you are seeking to retain your digital assets or ensure fair division, I provide the legal guidance needed to protect your interests. Call me today at 1-888-640-2999 to schedule a consultation.
Beryl Thompson-McClary
Address: 390 N Orange Ave #2300, Orlando, FL 32801, United States
Hours: Open
Phone: 1-888-640-2999
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