Couples in Delaware who are going through a divorce and negotiating the division of their assets might find the process more complex if they hold digital assets such as cryptocurrencies. These non-traditional assets can be much harder to divide since it might be challenging to establish their consistent value.
The changing value of digital assets
An issue that couples might find when attempting to divide their digital assets is that the value can change drastically, even within the time span of the divorce process. Couples might not be able to agree on what property each will keep if, for example, their cryptocurrency drops or increases significantly during this time. One way for couples to deal with this and complete their division of property is to include a volatility formula clause during their negotiations. This clause would state that when the digital asset changes by an established percent, the way the other assets are divided would also change.
Other challenges when dividing digital assets
Another challenge couples might face when dividing digital assets is transferring the funds once the division has been established. They may also need to address complications in relation to tax due when a digital asset is sold because of the increase in value or if their ex-spouse had not properly reported the income. Ways to prevent these issues include:
- Hiring a financial professional to help transfer funds
- Limiting access to information such as cryptocurrency keys
- Getting an affidavit from the ex-spouse stating that they reported all income correctly
If digital assets are part of your joint property, it’s important to handle these assets properly to avoid extra taxes or complications. Professional assistance might help you prevent mistakes that can become costly during the divorce.