It’s no secret that technology has drastically changed over the past few decades as a result of the technological boom of the late 1990s and early 2000s. As such, the assets subject to division during divorces have also changed. While a couple divorcing in 2005 may have bickered over who kept the home computer, you and your spouse may be concerned about other digital assets, like cryptocurrency. If you’re unsure how cryptocurrency is handled during a divorce in Missouri, you’ll want to keep reading. The following blog explores what you should know about these matters, including the importance of working with St. Louis property division lawyers to discuss your legal options for these digital assets.
What Is Cryptocurrency?
Cryptocurrency is a form of digital asset that exists solely online to serve as payment. Unlike cash or coins, crypto does not have a physical form. Additionally, it is decentralized, meaning it is not connected to banks. Instead, this currency uses blockchain technology, which is a ledger used to record all cryptocurrency transactions to verify and authenticate them.
You should note that, unlike a dollar, the value of cryptocurrency changes based on a number of factors, like supply and demand, the cost of mining, and economic conditions, which can all change how much this currency is worth. As such, you’ll find that crypto is considered a volatile asset.
Cryptocurrency Basics
- Digital asset with no physical form
- Operates on blockchain technology, which records transactions
- Decentralized, meaning it is not controlled by banks or governments
- Value fluctuates based on market conditions and demand
Is Cryptocurrency Considered Martial Property in Missouri?
In Missouri, cryptocurrency is classified as marital or separate property based primarily on when it was obtained and how it was used during the course of the marriage.
Before dividing crypto during a divorce, the Missouri courts, including those in St. Louis County, must determine if it is deemed marital or separate property, as this classification will directly impact whether or not the asset is divided during divorce proceedings.
When Crypto Is Considered Marital Property
- Crypto purchased or obtained during the marriage is generally marital property
- Ownership title (meaning who owns the wallet where it is stored) does not determine classification
- Joint investments or using shared funds to purchase the cryptocurrency strengthen marital property classification
- An increase in value during the marriage is also generally subject to division
When Cytpro May Be Considered Separate Property
- Crypto owned prior to marriage generally remains separate
- Assets acquired after legal separation are generally not subject to division
- Commingling assets (mixing separate and marital property) may convert it to marital property
- Contributions by a spouse that increase value can create shared interest
How Do Missouri Courts Divide Cryptocurrency in a Divorce?
It’s imperative to understand that, in Missouri, any property determined to be a marital asset will be subject to division during a divorce. Generally, a marital asset includes any property you obtained during your marriage. Regardless of who made the purchase or whose name is on the title of an asset, it is considered to be the property of both you and your spouse. This differs from separate property, which is assets owned before the marriage or obtained after separation. These assets will remain the property of the spouse who owns them as they are not subject to division.
Once it’s determined what property is considered a marital asset, all property will be divided per Missouri’s equitable distribution method. Essentially, this means that rather than being split evenly between both spouses, Missouri courts, including those in St. Louis County, will examine each party’s contribution to the marriage, both domestically and financially. While the court can decide to divide assets evenly, this is not automatic, and assets may be split unequally.
As such, if you or your spouse obtained cryptocurrency during your marriage, you’ll find that it will be subject to division. However, as mentioned, determining the value of this asset can be difficult, and you should note that the court will attempt to determine its worth based on the date you separated. Because this asset is incredibly volatile, Missouri courts generally rely on expert analysis or financial records to determine fair market value at or near the time of separation.
Factors Courts Consider When Dividing Crypto
- Each spouse’s financial contributions to acquiring the asset
- Non-financial contributions
- The length of the marriage
- Each spouse’s financial situation
- Timing of the acquisition of crypto
How Crypto Is Divided in Missouri
- Missouri adheres to the equitable distribution method, not equal division
- Crypto is treated like any other marital asset
- Courts will consider fairness
- Valuation generally occurs near the date of separation
What Happens If One Spouse Hides Cryptocurrency?
Due to the decentralized nature of cryptocurrency and the fact that it can easily be hidden in private wallets, one spouse may ultimately attempt to hide this asset during the divorce process. It’s important to understand, however, that Missouri courts take asset concealment seriously and may impose harsh penalties if uncovered.
Common Signs a Spouse May Be Hiding Crypto
- Unexplained financial transactions
- Transfers to unfamiliar or offshore accounts
- Increased secrecy around devices and online accounts
- Password changes or restrictions in financial access
Consequences of Hiding Assets in a Missouri Divorce
- Courts may award a more significant share of assets to the other spouse
- Courts may impose financial penalties
- Credibility with the court is harmed
- Additional investigations may occur
Contact an Experienced St. Louis County Divorce Attorney
Going through a divorce in St. Louis can be difficult, which is why working with an experienced attorney is in your best interest. Not only is this a challenging emotional period, but you’ll find that navigating the legal and financial aspects of this process, especially when cryptocurrency is involved, can quickly become overwhelming. As such, it is in your best interest to connect with the team at Stobie Family Law Group. We understand how challenging these matters can be, so we are committed to helping you. Connect with us today to discuss your circumstances.
