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Divorce is never fun and rarely simple, but when one party â generally the male â owns cryptocurrency, thereâs an added layer of complexity. With cryptocurrency still relatively new as an asset class, there have been very few cases to date in which the unhappy couple have squabbled over altcoins. A British law firm professes to be handling three such cases at present, with the largest involving a tug-of-war over crypto valued at $840,000.
Also read: Divorce is Messy â Especially When You Own Bitcoin
Kissing Goodbye to the Ball and Blockchain
It was only a matter of time until a high profile, high value crypto divorce grabbed the headlines. In the event, it was Britain that claimed the dubious honor of hosting the worldâs largest cryptocurrency untethering to date. âCrypto cash divorce nightmare loomingâ reads the cheery press release published by UK law firm Royds Withy King, on Valentineâs Day no less. Bolstering the stereotype about opportunistic lawyers, it reads:
Royds Withy King is acting on three separate high value divorce cases where spouses are seeking the disclosure and a potential share of cryptocurrency assets. Â These are a first wave of cases that the firm is expecting. The three cases all involve husbands that have invested in or have purchased cryptocurrencies, including Bitcoin, Litecoin, Ripple and Ethereum.
The most lucrative of these cases â for all parties â concerns âan original investment of ÂŁ80,000 [of cryptocurrency] in November 2016, which was valued at ÂŁ1m in December 2017 and is now worth ÂŁ600,000 [$840,000]â.
Vandana Chitroda of Royds Withy King
One of the firmâs partners speaks of there being âa traceability nightmareâ in cases where a spouse hasnât disclosed their assets. One partnerâs nightmare, of course, may be anotherâs dream. As previously ventured on news.Bitcoin.com, âParting with half of oneâs cryptocurrency collection doesnât come easyâŠProgressive males let their wife keep her surname and give up half their crypto come the divorce. Patriarchal oppressors put it all in monero and deny everything.â
While onlookers who arenât embroiled in a crypto divorce may derive a degree of schadenfreude from such cases, there are serious issues at stake. In many countries, a 50% division of assets is awarded, despite the husband often being the main breadwinner, because the wifeâs contribution is recognized in other domains, including caring for their children and supporting his career. Making money from cryptocurrency calls for shrewdness, foresight, and iron hands, but qualifying it in the same bracket as a 40-hour-per-week job may be stretching it. Unless the husband embroiled in the $840k case is a full-time crypto trader, he likely made his money simply from buying early and hodling.
Always 50/50 In Relationships?
Even if the manâs spouse isnât seeking an equal division of cryptocurrency, he may, for various reasons, begrudge parting with a portion of his portfolio. As Vandana Chitroda, a partner at Royds Withy King, points out: â[Volatility] presents a real challenge when valuing cryptocurrencies. Valuations will have to be carried out a number of times during the divorce process as the case progresses.â
If the couple are to reach an amicable resolution, the wife may find her husband more willing to come to an agreement in a bear market than during a bull run. Whether sheâd be willing to accept a payoff while the crypto markets are mired in the red is another matter entirely. In the years to come, divorce courts may be prove to be a prime testing ground for determining how cryptocurrencies are classified and valued.
Do you think crypto assets should be equally apportioned in the event of a divorce? Let us know in the comments section below.
Images courtesy of Shutterstock, and Royds Withy King.
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The post British Couple Lawyer Up as $840k Cryptocurrency Divorce Heats Up appeared first on Bitcoin News.
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The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.