Digital Asset Division Attorneys In Berks County
Digital asset division is very much the new frontier of asset division in family law. Digital assets are complicated investment and monetary vehicles that aren’t traditionally regulated by any central government. They are volatile, lucrative and extremely difficult to accurately divide during divorce.
At Palange & Endres, P.C., we are skilled attorneys who help people with family law issues in Berks County. We have an in-depth understanding of Pennsylvania property division law and know the pitfalls and realities of the situation. We provide you with an honest assessment of your legal situation and help you figure out the next step when dealing with complex matters of new types of assets.
What Complicates Digital Asset Division
The legal process for dividing marital property and separate property is well known, and the courts in Pennsylvania consider many factors to equitably divide all of the assets. However, when it comes to digital assets, there are several factors that can make the process more confusing:
- Cryptocurrency: Crypto assets such as nonfungible tokens (NFTs) and established coins such as Bitcoin are in a constant state of flux. If multiple forms of crypto are in play, dividing them fairly is extremely challenging.
- Digital wallets: One of the most important aspects of a crypto portfolio is the digital wallet, where the assets are stored. However, keys to these wallets can be easily lost, making the ability to access and assess these assets nearly impossible.
- Deceptive use of digital assets: Furthermore, a digital asset can be extremely hard to trace and is a key tool that some may use to conceal assets and online income streams.
Forensic accounting for digital assets is a necessity, as is understanding the potential tax implications of liquidating or splitting a digital asset portfolio. While the specifics of digital assets and crypto are new to the world of divorce, the basics remain.
Common Questions About Digital Asset Division In Pennsylvania
Dividing digital assets in a divorce raises questions that most people have never had to think about before. Here are straightforward answers to some of the most common ones we hear.
How do we value volatile assets like Bitcoin during a divorce?
Valuing cryptocurrency is one of the most challenging aspects of digital asset division because the value can shift dramatically from one day to the next. Pennsylvania courts generally look at the fair market value of an asset at the time of equitable distribution, but with crypto that snapshot can look very different depending on when it is taken. Forensic accountants and financial analysts familiar with digital assets are often brought in to establish a defensible valuation. Our attorneys work with those professionals to make sure the numbers used in your case reflect reality as accurately as possible.
What happens if I suspect my spouse is hiding crypto?
Hiding assets during a divorce is a serious legal violation regardless of the asset type, and cryptocurrency does not make it impossible to uncover. Blockchain transactions leave a permanent record, and a forensic accountant with digital asset experience can trace wallet activity, identify transfers and flag attempts to obscure holdings. If you suspect your spouse is concealing crypto or other digital assets, raise that concern with your attorney immediately. The sooner an investigation begins, the better positioned you are to recover what is rightfully yours.
Do we have to sell our digital assets and split the cash during a divorce?
Not necessarily. Liquidating digital assets is one option, but it is not the only one. In some cases, one spouse retains the crypto portfolio while the other receives assets of comparable value elsewhere in the marital estate. In others, a portion of the holdings transfers directly to each party. The right approach depends on the tax implications of liquidation, the current market conditions and what both parties are willing to accept. A digital asset division attorney at our firm can help you weigh those options before committing to any particular structure.
Experience Matters In Complex Cases
With more than 60 years of combined experience in family law and asset division, we will take on the case and challenges that come with digital assets and find a smart outcome for you and your family. It may take a long time, it may be an uphill battle, but we’ll be with you at every step.
Our goal is to pursue every bit of the property outcome you deserve for your divorce. Reach out to us today to learn more about our firm and how we work for you. Call 610-674-0712 or send an email using this form.