Cryptocurrencies were designed for anonymous and highly secure financial transactions, so being able to accurately trace them down is not the same as looking at a bank statement or a stock portfolio.
BETHESDA, Md. August 08, 2018
Bitcoin and other cryptocurrencies have risen from the fringe to become a viable, mainstream medium for financial holdings and transactions, and by their very nature, add a great deal of complexity to such matters in the midst of separation or divorce proceedings. After seeing a report from Vice News on the subject, Maryland divorce attorney Brandon Bernstein of the Law Offices of Brandon Bernstein has begun advising his clients on the risks involved.
The cases being reported cite husbands who invested in cryptocurrency, including not only Bitcoin, but additional cryptocurrencies, including Ethereum and XRP (Ripple). A series have issues have arisen, including traceability of the assets and valuation of the assets. Further, there's also been a lack thus far of a precedent setting ruling from family courts to establish some kind of consistent basis for how to manage the first two issues.
“The issues pertaining to cryptocurrencies are only now starting to percolate, and I wouldn't expect a great deal of clarity on the matter for quite some time, as our legal system and financial markets are both still only just beginning to embrace the culture of digital currencies,” advises Brandon Bernstein, a five-time Super Lawyers winner as a rising Maryland divorce lawyer.
“Cryptocurrencies were designed for anonymous and highly secure financial transactions, so being able to accurately trace them down is not the same as looking at a bank statement or a stock portfolio,” Mr. Bernstein says. “From there, the rapid and often wild fluctuations in market value present another troublesome scenario of either needing to stick to one valuation at a particular point in time, or to constantly reevaluate the worth of a cryptocurrency holding on an ongoing basis.”
The best way to know what a spouse has in terms of their financial assets is to be as honest and open as possible during the course of the relationship. When one suspects that something has been hidden from the other, and separation or divorce may be on the horizon, the issue can become difficult and muddied to sort through, with cryptocurrency adding murkiness to financial asset discovery in divorce.
The Law Offices of Brandon Bernstein is located in Bethesda, Maryland, and serves clients across Montgomery County and the rest of the state. Free consultations, including on the matter of Bitcoin and divorce, are available for prospective clients. Visit BrandonBernsteinLaw.com for more information, or call 240.395.1418 with any questions or to schedule an appointment.
About the Law Offices of Brandon Bernstein, LLC
The Law Offices of Brandon Bernstein, LLC is located in downtown Bethesda, and serves clients throughout the state as a divorce attorney in Maryland, covering a broad range of family law matters, and aggressively protecting the best interests of his clients at all times. He has been named a Maryland Rising Star by Super Lawyers for five consecutive years. The core pillars of his practice are Integrity, Experience, and Results. For a free attorney consultation, prospective clients can visit his website at BrandonBernsteinLaw.com, or call the office directly at 240.395.1418.