Crypto And Digital Assets In Minnesota Divorce
Digital assets are an extremely recent phenomenon in terms of investment vehicles. From crypto to nonfungible tokens (NFTs), these assets live in a largely unregulated state and are often a central part of a plan to conceal assets. Resolving issues of crypto, NFTs and digital assets demands the attention of an experienced, insightful legal team.
At Dwire Law Offices, attorney Dwire offers nearly 30 years of experience in all aspects of divorce. When cryptocurrency or NFTs are involved in a divorce, he can provide you with a calm, straightforward legal assessment based on Minnesota law. It’s natural to feel anxious, but we can help you take control of what is ahead.
Blockchain Forensics In A Minnesota Divorce
The blockchain is a technology that allows for secure transactions through the use of a decentralized digital ledger. The information within each “block” cannot be changed, ever. Blockchain is the basis for all cryptocurrency and NFTs. The lack of centralization adds a considerable dimension of difficulty in tracking and analyzing large digital asset portfolios.
Using forensic accountants, chain analysis and legal expertise, we can track these intricate financial tools, which may include Koinly subpoenas and IRS Form 8938 reporting. We can advise you on how to proceed in your divorce to avoid massive legal liabilities from your blockchain-derived assets.
Many couples and individuals pursue digital assets as part of their plans to grow their wealth. And that is a wise course of action, provided you understand the risks. Digital assets are one of the most popular and rising forms of investment options, and make up a considerable part of many portfolios. That does not ease the problems and risks they create in divorce.
If you have a considerable digital asset portfolio or if you suspect your ex has cultivated one in preparation for divorce, you need to have an attorney on your side who understands these assets.
How Is A Cryptocurrency Or An NFT Wallet Valued For Property Division In A Minnesota Divorce?
Cryptocurrency and NFTs are notoriously volatile in the market, rising and falling rapidly based on seemingly random factors. This volatility is a feature, but finding the value is a necessary aspect of beginning the equitable distribution process. The value is found in two ways:
- Current market value assessment: The assets in the cryptocurrency are likely to have an easily determined market value, which can be brought into the conversation.
- Expert appraisal: Beyond the market value is the analysis of the cryptocurrency or NFT, which can offer opinions on the stable value over time.
By combining a thorough review of all the potential information on the current value, we can project how that will impact the future value. And that will make the next step, an equitable division, much simpler.
What Are The Consequences If A Minnesota Court Finds Out A Spouse Hid Cryptocurrency During The Divorce?
Whether it is a cryptocurrency or not, hidden assets are a violation of the basic agreements that begin a divorce, as both sides must provide accurate financial statements. If one side in a divorce hides assets, they may face penalties from the court, including:
- Fines: Monetary payments to the court may be imposed, and the court has considerable discretion in setting the amount of the fine.
- Repayment: The offending spouse may face an order to repay what was hidden from the marital estate.
- Compensatory division: The court may divide the assets of the marital estate in favor of the spouse who did not hide assets.
Concealing assets in a divorce is a form of fraud. The greater the violation, the harsher the punishments the court may impose. These punishments can be even more extensive when you consider the inherent volatility of digital assets, since repayment and fines may be based on the amount concealed, which can change rapidly under unfavorable market conditions.
Experienced, Calm Insight Into Digital Asset Division
As your digital portfolio grows during your marriage, it gains value, which is threatened in divorce. A digital asset portfolio may be regarded with suspicion in many courtrooms or as an attempt to circumvent the court.
Attorney Dwire will help you protect your assets in your divorce. He can assist in hunting down concealed assets or preserving the value of your portfolio. Whatever you need from your attorney, Mr. Dwire will work to provide. To schedule a meeting, call us at 952-232-0179 or send an email using this form.