How to Make A Texas Divorce More Confusing – Bitcoin Battles! - Reynaldo Garza, III

Of all the challenging factors that Texas divorce law firms face when helping their many clients successfully get through their divorce cases, the rise in the use and popularity of cryptocurrency has to be near the top of the list.

It is an issue that divorce attorneys are encountering every day as more people invest in this newer type of digital currency.

How can divorce lawyers and their clients resolve cryptocurrency issues during a divorce?

It is critical for everyone involved to understand how the state views this currency and what must be done to disperse it according to state divorce laws.

What Is Cryptocurrency?

Cryptocurrency is a digital currency that has no physical form but has value online, where it is traded and/or used to make real-time purchases.

Although Bitcoin is the most notable type of cryptocurrency that divorce attorneys come across, there are many different types in use today.

As cryptocurrency becomes more popular and is accepted as payment by more businesses, its value and use continue to grow.

As a result, it is not uncommon for divorce lawyers today to come across clients whose assets include cryptocurrency of some sort.

How Does Texas Classify Cryptocurrency In A Divorce?

Though there is no consensus throughout the country as to whether cryptocurrency is considered actual currency or not, divorce law firms in Texas do consider it as such according to state laws.

Since Texas is a community property state, this means that any cryptocurrency held by a spouse that was obtained during the marriage must be considered marital and community property that is subject to division in a divorce.

Unfortunately, doing so is not always so easy for divorce attorneys, as there are certain challenges that cryptocurrency brings to the table in any divorce.

What Are The Biggest Challenge With Cryptocurrency Assets?

There are numerous concerns that divorce lawyers face when advising clients who own or whose spouses may own cryptocurrency, starting with the most notable issue of identifying it.

Since cryptocurrency is stored online in digital “wallets” that are accessible only with a specific key, it is very easy for cryptocurrency assets to be hidden from a divorcing spouse.

It can also be used to hide transactions made on other property as a means of retaining wealth and presents specific tax questions as well.

On top of these other concerns, divorce law firms working with cryptocurrency issues also point out that the valuation of digital currency is especially problematic and can complicate any divorce where this asset exists.

Additionally, there are questions about whether this currency can or should be allowed for child support payments in states that do consider it to be an actual currency, mainly because transactions made with digital currency cannot be easily traced the way that other transactions can be.

Hire A Divorce Law Firm Experienced In Cryptocurrency Issues

When marital assets include cryptocurrency or it is a possibility, divorce law firm clients must work with legal counsel that understands the laws pertaining to this asset, what is involved in identifying it, and how it must be dispersed as community property.

Choose a Texas divorce attorney who is staying informed with the latest news and discoveries about cryptocurrency like Bitcoin and others, and can properly advise on it.

Cryptocurrency is just one more factor that divorce lawyers find making divorces more complex and requiring their expert attention!