Valuing Assets In Divorce During A Pandemic: Cryptocurrency
Asset valuation is an important part of divorce litigation whether amid a pandemic or not. However, especially now, it is important to understand that the economy is changing and that it will affect the value of assets and debts in your divorce in determining a fair and equitable award.
In addition to determining what assets and debts are considered community or separate property, parties need to understand the economic positions they will be in following a divorce or separation in order to determine a fair and equitable division of that property. What may have been a fair division just a few months ago may now leave one party with much less than they bargained for.
With respect to cryptocurrency, there has been a rise in use and a rise in value due to the pandemic. For example, on March 1, 2020, Bitcoin was valued at $8,548.95 per Bitcoin whereas on September 1, 2020 opened at $12,057.57 per Bitcoin. The cryptocurrency market has experienced a sustained rise and the value is holding at that higher level. Some analysts predict an 11.9% increase through 2024. Cryptocurrency exchange rates began to grow despite a decrease of stock indices due to the fears of the US dollar devaluing after the Federal Reserve’s drastic measures. This could further benefit the sector by showing that cryptocurrency should not be tied to stock markets or the value of the dollar.
Do you or your spouse own cryptocurrency? Are you aware of its value? Have you discussed how to divide these types of assets? With the economic future uncertain, it is important to know the value of what you have now and make an educated an informed decision on what the value is likely to be in the future.
Our Family Law Group is available to assist you through these challenging times. Please contact us to schedule a telephone or video conference, via email to JasmineB@beresfordlaw.com or call our office at (425) 776-4100. We continue to serve our community with full remote capabilities.