With the ever-changing world of technology there is a new player in the money market crypto currencies.
It has been making waves over the past twelve months with a fluctuation at great speed in its value.
So what is crypto currency?
There are a few Etherum, Ripple and the one we all know Bitcoin.
Crypto currencies are digital currencies. These currencies are tracked via block chain technology.
These crypto currency are governed by a series of rules which regulate the currency.
But what does all that mean?
Bitcoins and other such currencies allow users to transfer funds directly to each other through a peer to peer system without the need for a middleman.
And by “middleman” we mean the banks.
In all property settlements the asset pool has to be identified. Each party must disclose assets, banks accounts and liabilities.
Given that cryptocurrencies don’t really exist, do they need to be disclosed?
Yes. Cryptocurrency are required to be disclosed, but given there is often no paper trail as there is with bank accounts this is another difficulty that a spouse may encounter during the disclosure phase of the process.
Market volatility is an issue that effects this currency. Valuation of an asset is imperative of the relations asset pool, we have experienced rapid influx and decline with the cryptocurrency.
Questions in disclosure correspondence between lawyers should address the following:-
A: when was the cryptocurrency acquired?
B: particulars of activities and transfer of cryptocurrency.
C: current value of cryptocurrency
WHAT IF YOU CAN’T PINPOINT THE VALUE?
A non-disclosing party does not provide disclosure the court may use discretion as to the value of the asset. There could possibly be a percentage increase for the non-offending spouse.
The issuing of subpoenas will be a very useful in these types of cases.
This new era has legal practitioners and the judiciary scrabbling at times for answers.
The cryptocurrency requires considered consideration due to its complexity. At Joplin Lawyers we are acutely aware of this new age issue as always you need Joplin Lawyers 1300 JOPLIN.