Tuesday, April 17, 2018
From Schiller, DuCanto, & Fleck, LLP:
In Illinois, incident to resolving a divorce case, all assets and liabilities are required to be identified, valued, and allocated between the parties equitably. Although often resulting in a 50/50 division of marital assets, “equitable” does not necessarily mean “equal.” Prior to either reaching an agreed upon division of assets, or proceeding to trial on the issues of property division, all assets must first be identified and then where possible, valued. With the rise of the digital age, issues of valuation have expanded to the world of cryptocurrencies such as Bitcoin. Valuation, however, is not the only issue involving bitcoin and divorce. Today, divorcing parties and their attorneys must be diligent in approaching bitcoin (and all other cryptocurrencies for that matter) during divorce.
While identification of the existence of bitcoin or other cryptocurrency is the starting place, one must first understand what bitcoin is. Bitcoin is an electronic currency that allows users to transfer funds directly to one another through a peer-to-peer system without the need for a middle man, like a bank or Western Union. As set forth in the Wall Street Journal, “Bitcoin, despite its name, isn’t money. It does not have governmental backing. According to the Journal, its extreme price volatility significantly diminishes its usefulness as a reliable unit of account or effective means of payments. Bitcoin might, however, serve as a sustainable store of value, like gold.”
Read more here.