Digital Currency and Divorce

When a married couple decides to end their union, they will typically ask the courts to determine, among other things, how their property should be divided. While in some instances, the process of dividing marital assets is simple, in other cases, like those involving digital currency, it can be complicated. Not all attorneys understand how to locate or assess the value of non-traditional currency, and their lack of knowledge can negatively impact their clients. If you or your spouse intend to seek a divorce and either of you owns digital currency, it is wise to retain a lawyer proficient at handling divorces involving digital assets. The capable Dallas divorce attorneys of McClure Law Group possess the skills and experience needed to navigate the complexities of digital currency and divorce, and, if you engage our services, we will advocate aggressively on your behalf to help you seek a just outcome.

Under Texas law, any property or asset that a person obtains during their marriage is presumed to be community property unless it is expressly deemed otherwise or falls under an exception, such as damages awarded for a personal injury and property acquired via descent, devise, or gift. A party arguing that an asset is the separate property of one spouse must prove their position via evidence that is clear and convincing. Community property belongs to both spouses. As such, when faced with the matter of how to divide such property, the court will order a division in a manner it considers just and right, after weighing the rights of each party and any children they had during the marriage.

Digital currency, as the name suggests, is currency that lacks a concrete form that can be exchanged and instead exists solely in digital form. Digital currency is similar to cryptocurrency in that both exist electronically, but there are important differences between the two; specifically, digital currency is considered an electronic form of fiat money, or legal tender whose value is linked to currency issued by the government, while cryptocurrency gains its value from its native blockchain. Similar to most assets, digital currency can be considered community property that the Texas courts can divide in divorce actions.

Digital currency presents numerous challenges in divorce actions. First, it is easy to hide, and there are often few, if any, records associated with digital-currency transactions. As such, unless a party seeking information about digital currency carefully determines what questions to ask their spouse, they may not receive complete information regarding digital assets that may be considered community property. Further, the value of digital currency often changes at a rapid pace, and parties will frequently disagree as to the true value of a digital asset and when the value should be determined. Finally, transferring digital currency from one spouse to another can be complicated, as the companies that hold such assets often lack the resources to readily re-allocate them.

While there are numerous forms of currency, most money acquired during a marriage is subject to property division in a divorce, regardless of whether it is digital or in traditional form, and it is important for parties in dissolution proceedings involving digital assets to understand their rights. If you have questions about digital currency and divorce, it is advisable to contact an attorney as soon as possible. The skilled Dallas lawyers of McClure Law Group understand the importance of obtaining a just division of marital property, and if you hire us, we will fight tirelessly on your behalf. We represent people in divorce matters in Dallas, Rockwall, Fort Worth, Richardson, Frisco, Irving, McKinney, and Garland. We also represent people in family-law cases in cities in Dallas, Denton, Rockwall, Collin, Tarrant, and Grayson Counties. You can reach us through our online form or by calling 214.692.8200 to set up a confidential consultation.