Zuba & Associates, P.C.

Considerations for splitting a bitcoin account in divorce

One conflict that may arise for a couple going through a divorce in Illinois is over a bitcoin account. In fact, the acquisition of a bitcoin account itself could lead to a divorce since a person may devote a considerable amount of time to developing it.

Some websites encourage the use of bitcoin accounts to hide assets, and some people might use them for this purpose. However, even if a person intends to be completely upfront about the bitcoin account and its value, this may be more complex than it initially appears.

For example, one question might be how to assess the value of the bitcoins. They might be assessed at their purchase price, or they might be assessed at their current value. A person might also have a choice in how to take a share of the bitcoins. For example, they could be split at their current value, or a person might want to take a percentage of their worth over time.

Although the specifics of these issues may be unique to cryptocurrency, similar issues in hiding assets, how to assess the value of assets and how to split assets may arise with other property as well. For example, a couple might agree that one person will keep the retirement account and the other will keep an asset of roughly equal value. However, just because two assets have roughly equal value at any given time does not really mean that each person taking one makes for an equitable split. For example, a bank account with the same amount of money in it as a retirement account is a more liquid asset and does not incur taxes and penalties if used. Compared to a retirement account, a home could be costly in terms of insurance, repairs, and taxes, and it might also depreciate in value.

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Zuba & Associates, P.C

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6067 Strathmoor Drive
Rockford, IL 61107

Phone: 815-397-7000
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