Cryptocurrencies are becoming such an attractive asset to hold that divorcing couples have taken to fighting over them. It’s no longer a case of who gets the house, but who gets the digital coins.
Such is the rise of cryptocurrency assets that one U.K. law firm is advising on three divorce cases involving digital currencies, reports Business Insider.
The law firm in question is Royds Withy King who said that the cases involve bitcoin, ethereum, ripple, and litecoin.
Whereas, two of the cases involve a small amount of cryptocurrency, the third features an amount worth £600,000. According to the report, the husband initially invested £80,000 in cryptocurrencies; however, given the rapid appreciation the market experienced toward the end of 2017 that investment has since increased handsomely.
According to Vandana Chitroda, a partner in Royds Withy King’s Family team leading the divorce cases in London, these are the first cases that the firm has seen, but they expect to see more, adding:
We believe that cryptocurrencies will be a significant feature in a large number of divorces. Whilst cryptocurrencies are volatile, they are not going to go away. 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.
What will be interesting about this, however, is to see what power the court has when making a decision. At present, it’s not exactly clear what type of property digital currencies are. As there are no clear rules available to consider it’s not known if a judge can order a transfer of funds.
According to Mark Philips, another partner at Royds Withy King, tracing cryptocurrencies can be very ‘time-consuming and expensive,’ adding:
This is, of course, much easier if cryptocurrencies are traded via an online investment platform and bought with funds from a bank account, as the original value of the transaction can then be established. When cryptocurrency is purchased directly and moved offline, it becomes almost impossible to trace.
Yet with the possibility of these cases become more widely seen it seems that law firms will have to become savvy as to how they should proceed.
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