Crypto Divorce Nightmares Looming in Britain
While divorce is never pleasant, but when one of the partners owns cryptocurrency, another layer of headache is added to the stew. British law firm Royds Withy King is now working on three such cases, with the largest of those boasting assets valued at around USD 840,000 in crypto.
All three cases involve husbands who have invested in or bought cryptocurrencies at some points, such as Bitcoin, Litecoin, Ripple and Ethereum. They simply bought early and HODLed, so whether this really qualifies in the same bracket as a 40-hour-per-week job is debatable.
Vandana Chitroda, a Partner in the Family team leading the divorce cases in London said: “These are the first cases we have seen, and we expect to see many more. There will also be those divorces where a spouse may not have disclosed such assets leaving a traceability nightmare.”
Another layer of complexity is added with valuation: Chitroda said on the topic of crypto volatility, “This presents a real challenge when valuing cryptocurrencies. Valuations will have to be carried out a number of times during the divorce process as the case progresses.”
She also offered advice to anyone who might find themselves in a similar situation:
“It is important that if you believe your husband or wife has invested in or purchased cryptocurrencies, such as Bitcoin, and you are separating, you tell your legal adviser. Your advisers need to understand the implications of cryptocurrencies on any divorce settlement and have the network of specialist advisers to ensure that they are traced and valued correctly.”