Tag Archive for: Oak Brook Divorce Attorney

The Era of Cryptocurrency Divorce

Cryptocurrency divorce is a new phenomenon sweeping the nation and the globe. If you are facing these unchartered waters, an experienced family law attorney is a must.

The rise of the cryptocurrency market has seen exponential growth, which has led to the less navigated world of cryptocurrency divorce.

Crypto assets are notoriously difficult to trace and control, and the legal landscape surrounding cryptocurrencies is still full of gray areas, making them complex to handle in divorce proceedings. At Masters Law Group, we understand the complexities of uncovering hidden assets, such as cryptocurrencies.

In this blog, we’ll walk you through everything you need about crypto assets in divorce cases to ensure a fair settlement. Here’s what you should know.

Understanding Cryptocurrency 

Cryptocurrency, a form of digital currency, utilizes cryptographic technology to secure transactions and verify the transfer of assets. Initially attractive for its anonymous transactions, it has evolved to become widely used for everyday purposes such as bill payments and online purchases. According to a recent NBC News poll, approximately 20% of Americans have engaged in cryptocurrency investments, trading, or usage, showcasing its growing presence in the financial landscape. Notably, the demographic group with the highest participation comprises men aged 18 to 49.

While Bitcoin remains the most well-known cryptocurrency, the market has seen the rise of other digital currencies, such as:

These alternatives have gained popularity due to their unique features and potential for diverse applications beyond financial transactions. As the world becomes more familiar with cryptocurrency and its benefits, its integration into various aspects of daily life will likely continue expanding. Let’s look at how crypto affects divorces across the United States.

Why Cryptocurrencies Matter in Divorce

Cryptocurrencies have emerged as a noteworthy factor in financial settlements during divorce proceedings. However, with the rising popularity and widespread adoption of cryptocurrencies, more divorce cases involve these digital assets. CNBC recently reported that in 2023, crypto played a significant percentage in divorces that ranged from 20% to 50%.

As the landscape of financial assets evolves, it becomes essential for divorcing couples and their legal representatives to stay informed about cryptocurrencies and their implications in the division of assets. Failure to address these digital assets adequately during divorce proceedings may lead to complications and disagreements in determining fair settlements.

Cryptocurrencies’ decentralized nature and relative anonymity can make it challenging to track and value them accurately, complicating the delicate process of dividing marital property. Additionally, sudden price fluctuations in the cryptocurrency market can significantly affect the overall value of a couple’s assets, further complicating matters.

Asset Division In Illinois

If you suspect that your spouse may be concealing cryptocurrency assets, there are steps you can take to investigate the matter thoroughly. In divorce proceedings, fully and honestly disclosing all assets, including cryptocurrencies, is crucial. In Illinois, dividing cryptocurrency assets follows a similar process as any other marital property.

Illinois does not adhere to the community property principle. Instead, the court will distribute assets purchased, converted, or appraised during the marriage in an equitable manner. It is important to understand that equitable does not necessarily mean equal; various factors are taken into account in determining the distribution, including:

  • Age, health, and financial circumstances of each spouse.
  • Contributions made to the marital estate.
  • Obligations related to previous marriages, as ordered by the court.
  • Considerations regarding child custody.
  • Pre and post-nuptial agreements.
  • Tax implications.
  • Duration of the marriage.
  • Alimony arrangements.

If you ever find yourself uncertain about the ownership of assets, seeking legal counsel promptly is advisable to avoid any confusion or ambiguity.

Agreements on Dividing Crypto Assets

Dividing crypto in divorce cases can be challenging due to their fluctuating value. However, with careful consideration, the process can be made relatively straightforward. Here are some approaches to handle it:

  1. Simple Division: One party receives a portion of the cryptocurrency as it is at the time of the divorce.
  2. Custodial Holding: A third-party custodian receives and holds the share of cryptocurrency until the divorce is finalized.
  3. Cryptocurrency Owner Liquidation: The asset owner converts the other party’s share into cash based on the digital currency’s value on the day of the sale.
  4. Liquidation With No Claim Upon Remaining Cryptocurrency: Similar to option #3, both parties agree that the original owner retains full title to the remaining cryptocurrency.

It’s important to note that there are no loopholes in divorce proceedings concerning cryptocurrency. While courts are familiar with handling the volatility of traditional assets, cryptocurrency introduces a new level of complexity.

Work With Masters Law Group

Navigating the complexities of cryptocurrency asset division during a divorce in Illinois can be overwhelming. At Masters Law Group, we understand the intricacies involved and are here to assist you every step of the way. Our skilled attorneys, serving communities across Chicago and the suburbs of Elmhurst, Hinsdale, DuPage, and Oakbrook, offer experience and insights into the world of the crypto divorce and can help you navigate this complex process.

Whether you have inquiries about divorce proceedings or require guidance on discovering digital assets and asset division, we are ready to provide answers and support.

Contact us today to schedule a complimentary consultation and learn how we can support you through your crypto divorce.

Common Mistakes to Avoid During a Divorce

Divorce Mistakes can be minimized dramatically through proper preparation and avoiding pitfalls. If you’re facing an unsettling divorce situation, here are our top pitfalls to avoid. 

Divorce is difficult in many layers. It affects not only you and your spouse but your family and friends. With this in mind, minimizing the difficulties of divorce should be a top priority alongside the goals of your separation. But how do we go about reducing these challenges?

Beyond choosing a quality divorce firm and emotionally preparing yourself, there are many mistakes – that, if avoided – will make divorce much more accessible. Read on to learn common mistakes we’ve observed at Masters Law Group after years of counseling those seeking a divorce.

Not Talking to a Divorce Attorney

When looking to divorce, some will attempt to settle on their own. This may come from an idea of an “amicable approach,” but it can put you and your loved ones in a compromising position in the long term. Approximately half of all marriages end in divorce. Notably, this figure primarily applies to first marriages, of which about half result in dissolution. However, the failure rate for second and third marriages is significantly higher.

First and foremost, attempting divorce on your own removes experienced legal counsel from the equation, opening you up to variables that can negatively affect you. Things like asset division and custody of children have legal nuances that aren’t easily navigated. Avoid this mistake if you can. Seek quality legal counsel so that your life post-divorce is what you want.

Setting Unrealistic Goals & Timelines

The emotional aspect of divorce can often influence our approach to the process. Whether you’re the one seeking a divorce or it’s your former partner, you might feel that certain aspects are “unfair” or that the process should move faster than it is. One common problem that arises with unrealistic timelines is when a spouse becomes disgruntled and intentionally prolongs the process to cause financial or emotional harm to the other party.

This situation highlights the importance of having legal counsel that can remain emotionally detached from the divorce. Having such counsel will help you set appropriate timelines and realistic goals while providing you with an advocate who works at the highest level to achieve the best possible outcome.

Other Mistakes to Avoid

  • Dating: While everyone involved in the divorce wants to move on, dating can complicate an already difficult situation. It can create animosity with your former partner and may push them to make the divorce more complicated than need be.
  • Divorce Tunnel Vision: While getting wrapped up in your divorce is easy, it’s paramount to consider life after. Are you financially set and aware? Have you considered how to navigate the logistics of shared custody of children if it pertains to your situation? Consult with your financial advisor and legal counsel on these concerns.
  • Avoiding Negotiation: If you can communicate with your former partner, negotiation is always an ideal way to mediate. If you can do this, you can often avoid going to court. This will shorten the divorce process, limit costs and ultimately reduce stress on all involved.
  • Misleading Your Legal Counsel: Do your best to be truthful at the highest level. Any omission of facts, assets, or animosity between you and your former partner can affect divorce. If your legal counsel isn’t aware, these unforeseen challenges can derail a plan they’ve laid out. This can ultimately cost you more money and reduce the positive outcome of your goals.

Final Thoughts

Avoiding these mistakes and sidestepping potential challenges is your best course of action for a positive outcome in your divorce. Consequently, being unprepared or even attempting to divorce can lead you to these issues, causing emotional harm and potential financial and legal ramifications. 

At Masters Law Group, our firm’s mission is to solve your problems and achieve the best possible results for you and your loved ones. With a strong emphasis on serving clients in Chicago’s Western Suburbs, including Elmhurst, Hinsdale, DuPage, and Oakbrook, we offer a range of services designed to assist parents, children, and families during difficult times such as divorce, parenting time, and the allocation of parental responsibilities.

If you’re currently navigating a divorce, or considering one, schedule a consultation with us today to learn how we can help.