By Ross E. Schulman, Associate Attorney
Cryptocurrency—like Bitcoin, Ethereum, and countless altcoins—has surged into the mainstream, transforming divorce settlements in Florida. These digital assets, unlike traditional bank accounts or real estate, create a minefield of challenges in equitable property division.
Their wild price swings, decentralized structure, and ease of concealment can turn a divorce into a financial nightmare without expert legal guidance.
Florida’s equitable distribution laws strive for fairness, not a 50-50 split, but cryptocurrency’s complexities—skyrocketing or plummeting values, hidden wallets, tax traps, and costly asset tracing—demand specialized expertise to ensure a fair outcome.
What Makes Cryptocurrency So Tricky?
Cryptocurrencies are digital assets powered by blockchain, a decentralized ledger free from banks or government oversight. Stored in digital wallets or on exchanges, they can be traded, held, or spent. But their digital nature is a double-edged sword: while secure, they’re also easy to hide. A spouse could stash Bitcoin in an obscure wallet or muddy transaction histories, making it nearly impossible to uncover without forensic expertise. Add in other digital assets like NFTs, and the complexity skyrockets.
Equitable Property Division in Florida
Florida is an equitable distribution state. Florida’s equitable distribution model seeks a fair division of marital assets—think income, homes, retirement accounts, and yes, cryptocurrency acquired during the marriage. Separate property, like pre-marriage assets or inheritances, usually stays off the table. But fairness hinges on transparency, and crypto’s elusive nature threatens that.
Courts weigh factors like financial contributions, marriage length, and economic needs, but they also punish misconduct—like hiding assets. Cryptocurrency’s volatility and anonymity make it a prime tool for deception, so full disclosure is non-negotiable. Without it, you risk losing your fair share.
The Challenge of Valuing Cryptocurrency
Cryptocurrency is unstable. The price of these assets can move up and down in a matter of hours, turning valuation into a high-stakes guessing game. Courts typically peg assets to a specific date, but when Bitcoin’s price rollercoasters daily, pinning down a “fair” value feels like chasing a mirage. A $50,000 holding today could be $30,000—or $80,000—tomorrow. Not only do you need to access the proper valuation, you may have to justify the date you are basing the valuation and why this particular date should be relied on by the Court.
Courts often require valuation at a specific cutoff date, but determining a fair division can be difficult when prices swing unpredictably.
Adding to the challenge of properly valuing Bitcoin, is finding that it exists in the first place. Tucked away in digital wallets or obscure exchanges, it’s easier to conceal than other assets. In contentious divorces, a spouse might transfer Bitcoin to a secret wallet or time sales to skew valuations, leaving the other spouse shortchanged. Uncovering these assets often requires forensic accountants and tech-savvy attorneys—expertise most don’t have on speed dial.
Division Strategies for Cryptocurrency in Divorce
Splitting cryptocurrency is no simple task, thanks to its volatility and tax implications. Smart planning is critical to avoid costly missteps. Common approaches include:
. Buyout Agreement – One spouse compensates the other in cash for their share of the crypto.
. Asset Division – The cryptocurrency is split between spouses based on its current market value.
. Liquidation – The couple agrees to sell the crypto and divide the proceeds, however selling triggers capital gains taxes that can eat into your share.
Speak with Woodward, Pires & Lombardo, P.A. Today
Cryptocurrency in divorce isn’t just an asset—it’s a puzzle wrapped in a riddle. From tracking hidden wallets to nailing down valuations and dodging tax pitfalls, the stakes are high, and the margin for error is slim. An attorney skilled in crypto and Florida divorce law can uncover assets, negotiate fair divisions, and protect your financial future. If you are ready to discuss the complex nature of dividing digital marital assets, Woodward, Pires & Lombardo, P.A. are here to help.
Call or email Attorney Ross E. Schulman for a consultation and to learn more.
About the Author
Ross E. Schulman is a highly rated family law and estate planning attorney at Woodward, Pires & Lombardo, P.A. in Naples, Florida. He is licensed to practice law in Florida and New York and is a Certified Financial Litigator (CFL™). Ross’ Juris Doctorate is from the Benjamin N. Cardozo School of Law Yeshiva University. He recently completed the University of Miami School of Law, Heckerling Graduate Program in Estate Planning, with a Master of Laws in Estate Planning LL.M.
Before becoming a lawyer, Ross worked in finance and gained strong negotiation skills while working on Wall Street. He traded financial products at Spear Leeds & Kellogg (later Goldman Sachs) and Bear Stearns. He also worked as a financial advisor at Morgan Stanley, where he gained extensive knowledge about asset classes and various financial products. Ross is highly qualified to help you handle a variety of legal issues.
Woodward, Pires & Lombardo, P.A.
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