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Recently, as cryptocurrencies (virtual currencies) such as bitcoin have emerged as mainstream investment destinations, how to divide bitcoin in the event of a divorce is suffering a headache from the US judicial authorities, CNBC, an economic media outlet, reported on the 30th (local time).
Since there are almost no laws on cryptocurrencies such as Bitcoin, the law to be applied in divorce lawsuits is insufficient, causing the judicial authorities to suffer.
As cryptocurrency has recently emerged as a mainstream investment destination, 20 million Americans are investing in cryptocurrency. As of early April, the market cap of cryptocurrency exceeded $2 trillion ($1.5 trillion as of the 30th).
In such a situation, if the spouse invests in cryptocurrency, the division of property becomes very complicated when divorced.
In particular, the volatility of cryptocurrency is extreme, making it difficult to divide assets. In fact, Bitcoin rose to $64,000 last month, but the price volatility is so extreme that it remains at $35,000 as of the 30th.
Accordingly, the amount of property division can vary greatly depending on where the divorce date is set.
Tax is also one of the considerations. If your spouse bought bitcoin four to five years ago, the long-term capital gains tax is applied and the tax is low. However, if you have realized your profits from your recent investments, high taxes may apply.
Accordingly, you may receive a tax invoice after the divorce.
CNBC advised that if you split the cryptocurrency as it is without converting it into cash, you should never forget to share a password to access the cryptocurrency.
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