Lawyers Discuss Challenges Posed by Cryptocurrencies During Divorce

Several lawyers have discussed some of the challenges that arise from cryptocurrency ownership during divorce. The anonymous nature of cryptocurrencies creates the possibility for spouses to accumulate wealth that is concealed from their partner. However, this often can lead to parties searching for 'pots of gold' that don't exist.

Cryptocurrency Holdings Complicate Divorce Proceedings

One of the major challenges posed by cryptocurrencies is the ability for an individual to hide assets from their partner, owing to the anonymizing qualities of cryptocurrency. Toby Yerburgh, the head of family law of Collyer Bristow in the UK, recently told media that "Often in a divorce one spouse is looking for a pot of gold that doesn’t exist. But with cryptocurrencies, it’s possible the pot does exist.”

Mr. Yerburgh attests to having begun to receive cases involving one party suspecting that the other is failing to disclose cryptocurrency holdings following the spike in the popularity of virtual currencies last year.

Lawyers Seek to Educate Themselves Regarding Cryptocurrency

The president-elect of the American Academy of Matrimonial Lawyers, Peter Walzer, states that many American lawyers are seeking to better understand cryptocurrencies in response to their increasing persistence as an issue during the matrimonial separation.

"I’m getting calls from lawyers all over the US trying to get familiar with the language around cryptocurrencies. We have to learn some new words for old ideas,” Mr, Walzer said. Jonathan Fields of Massachusetts-based firm Fields and Dennis described cryptocurrency as 'now' comprising 'a standard part of our discovery process. I will make sure I’ve got the right language and questions to ensure a partner discloses their cryptocurrencies.”

Uncovering Evidence of Cryptocurrency Ownership Comprises Long and Uncertain Process

Concerns that a spouse may be concealing undisclosed cryptocurrency holdings from their partner can add considerable time and expense to the divorce process, as the services of a digital forensics expert are often required in order to scour for evidence of hidden crypto. However, cryptocurrencies held offline will leave scant digital footprints, resulting in little guarantee that the efforts to evidence concealed holdings will prove fruitful.

'Courts Are Being Faced With a Challenge It Doesn’t Have the Power to Deal With”

Mrs. Chitroda also stated that 'The courts are being faced with a challenge it doesn’t have the power to deal with,” adding that "The courts have only recently started allowing people to send documents to court using email. We’re going to really have to run to keep ahead of all of this. It’s a big challenge for all of us. We’re trying hard to educate ourselves and be ready.”



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The post Lawyers Discuss Challenges Posed by Cryptocurrencies During Divorce appeared first on Bitcoin News.

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