Finding and Tracking Cryptocurrency in Louisiana Divorce (2024) Finding and Tracking Cryptocurrency in Louisiana Divorce (2024)

Virtually every divorce involves some form of asset division, but a growing number involve some form of cryptocurrency. Since this technology is still quite new, it can be difficult for traditional divorce attorneys to assist with finding and tracking cryptocurrency in a Louisiana divorce. Fortunately, attorneys well-versed in cryptocurrency, NFTs, and other digital assets and their protection are available to assist you during your divorce.

Why Is Cryptocurrency So Difficult to Find?

One of the main advantages of cryptocurrency over other forms of assets is its relative anonymity. Cryptocurrency is stored in a digital wallet, and each wallet has a public key to give to others to replace personally identifiable information. This key can be used to find the user’s address, which shows an individual’s transactions on the blockchain.

Since keys are used in the place of personal information, it can be difficult to determine how much an individual owns in cryptocurrency without knowing their wallet information. Even if you know the person’s financial details and bank account information, it is not necessarily tied to a cryptocurrency wallet.

How to Find a Spouse’s Digital Assets

While it can be difficult to find the cryptocurrency wallets of individual people, there are some patterns of behavior that can point to the purchase of digital assets, including:

• Reviewing Financial Documents: If a spouse purchased cryptocurrency, you might be able to find the transaction history on a bank statement or credit card bill. Cryptocurrency must also be reported to the IRS, so tax documents might also play a role.
• Documenting Strange Transactions: It might seem suspicious if a spouse suddenly has a large surplus of money or if some of their assets mysteriously disappear. These transactions aren’t always the result of cryptocurrency, but they should still be examined to make sure other assets are not being hidden.
• Monitoring Email Accounts: Some cryptocurrency transactions involve records that show up in a person’s email account. This could provide wallet information, as well as records of how much money was invested into an account.

This process can be made much easier with the help of a cryptocurrency attorney. A lawyer who is well-versed in digital assets can expedite the search because they already know what to look for.

Why Is Finding Cryptocurrency in a Divorce Important?

Finding and documenting cryptocurrency is important because it could play a large role in asset division. The state of Louisiana follows community property laws, which means that both the property and proceeds from property acquired during a marriage are split evenly unless the couple can negotiate another agreement.

The impact of cryptocurrency on property division could depend on when it was valued due to its high volatility. The valuation date can be determined by both spouses as long as they are both in agreement. However, some spouses are unable to reach an agreement on a cryptocurrency’s valuation date. This makes working with an attorney who understands cryptocurrency an important part of the asset division process.

Cryptocurrency could even influence spousal and child support. If the owner of cryptocurrency is determined to be the non-custodial parent, the amount they have might impact their adjusted gross income, which could impact how much they must pay in child support. If cryptocurrency was hidden at the time when child support was calculated and revealed at a later date, a child support modification order could increase the non-custodial parent’s obligations.

FAQs

Dedicated Cryptocurrency Assistance in Jefferson Parish

Filing for divorce is often more difficult when digital assets are involved. This is why it is so important to work with a legal team that understands cryptocurrency. They can make sure both your physical and digital assets are protected.

Quantum Counsel is one of the few law offices in the New Orleans metro area to offer targeted assistance with digital assets. Their experience with blockchain technologies like cryptocurrency and NFTs can help protect your assets in a divorce. The firm aims to provide cost-effective legal solutions to both individuals and businesses throughout Jefferson Parish and New Orleans.

Schedule a consultation with Quantum Counsel for more information on how to manage your digital assets, including cryptocurrency, NFTs, and other blockchain technologies, during divorce.