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How can cryptocurrency complicate a divorce?

If you’re divorcing someone in California who owns cryptocurrency, the process can get complex. Here’s a closer look at how cryptocurrency can be difficult to deal with.

Volatility rates

As is the case with most investments, the value of cryptocurrencies often changes over time. However, it’s not uncommon for this type of currency to go through violent price changes. A cryptocurrency wallet worth $350,000 one day might be worth $10,000 or $1,000,000 by the time it’s ready to divide in a divorce.

These fast-changing values are why some people add a volatility formula into their divorce agreements. Having this in a contract is a good way to keep things fair during the divorce process.

Transferring cryptocurrency

When you and your estranged spouse are dividing cryptocurrency, it’s likely that this currency will need to get transferred from one party to another.

Before you start any transfers, it’s a good idea to keep these transfers as private as possible. You don’t want many people or companies having you or your spouse’s cryptocurrency wallet keys. To help ensure this doesn’t happen, only work with a cryptocurrency transfer professional who’s trustworthy.


When taking care of property division, you’ll also want to take a close look at your taxes. People holding cryptocurrency must pay capital gain taxes when they decide to cash out some or all of this currency.

While you’re negotiating the terms of your divorce, cryptocurrency-related tax bills might become something you and your ex-spouse have to work out.

As you can see, cryptocurrency can complicate the divorce process. However, putting in the time and effort can help ensure that nothing dividable gets left off the table.