A Guide To Divorce And Crypto Assets

Lost money to a crypto or trading scam? Read this first:

If your losses exceed £3,000 (in the UK) or $10,000 worldwide The Crypto Adviser can offer advice on recovering your funds. 

>> GET IN TOUCH

Getting divorced is often a highly emotional situation and there are a million things to sort out and divide up between the separating partners.

Splitting money and assets is one of the main areas of contention, with couples sometimes spending thousands of pounds arguing over who gets what in the courts.

Not so long ago this usually revolved around cash savings, shares and businesses, but increasingly cryptocurrency is in the mix as well.

Note: When entering into divorce proceedings, transparency is key. If you fail to disclose your crypto assets this can have legal consequences and also harm your overall case.

Many people are finding themselves in a situation where they’ve been awarded a portion of their spouse’s crypto holdings but have no idea what to do with it.

If you haven’t had any experience of buying, selling or storing cryptocurrencies before, it can be overwhelming, especially when you’re already in a heightened emotional state.

Some people want to sell it straight away and get the cash rather than having to worry about storing it securely or the price fluctuations that can affect its value.

Note: You need to be aware of the tax implications of selling crypto. For most people, the tax they need to consider is Capital Gains Tax. You get a small tax-free allowance each year, but any profit above this must be declared.

However, there are others who are keen to keep the coins in the hope that they’ll increase in value at some point in the future.

Whether you want to sell or ‘HODL’ (hold onto the coins), you need to ensure you’re confident in both procedures.

There are levels of technical complexity with crypto that can be daunting to anyone unfamiliar with how it works.

Note: Mistakes can be costly and there are a huge number of scams in operation that you need to be aware of when engaging with the cryptosphere.

You’ll find hundreds of guides and videos available online which will help you get to grips with the basics, but if you’re still unsure it’s important to seek professional help.

For anything related to the legal side of splitting cryptocurrency during divorce it’s important to consult a regulated solicitor.

However, if you’re stuck with selling or storing your newly acquired crypto assets then we can help.

Cryptocurrency can be a valuable asset – the last thing you want to do is risk losing it.

Recap – things you need to consider when crypto is part of a divorce:

• How to receive the crypto
• How to sell the crypto
• Which taxes you need to pay
• How to store your coins securely
• How to pass on crypto to loved ones

> Get in touch with The Crypto Adviser team today.