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Protecting cryptocurrency assets in a divorce

On Behalf of | May 4, 2023 | Blog, Divorce

Texas is one of the nine states with community property laws. That means all of the assets that a couple acquires while they are married will generally be divided equally by a judge if they divorce. The marital estate is made up of tangible assets like real estate, automobiles, furniture and jewelry, and it also includes financial assets like bank accounts, insurance policies, investment portfolios and cryptocurrency holdings. Investments like cryptocurrencies and stocks that were owned by a divorcing spouse before they got married would not be divided because they would be considered separate property.


Cryptocurrencies like Bitcoin and Ethereum have become extremely popular in recent years because they have provided solid returns, and they are frequently purchased by investors who wish to avoid strict regulations and remain anonymous. This has made cryptocurrencies an attractive option for wealthy spouses who wish to conceal assets before or during a divorce. Identifying cryptocurrency assets is not always easy, but it is far from impossible. Cryptocurrency blockchains can be viewed by anyone, and forensic accountants are usually able to identify suspicious transactions fairly quickly after scrutinizing tax and financial records.

Prenuptial agreements

Couples in Texas who would like to decide for themselves how their assets should be divided in a divorce can avoid court battles and the strict implementation of the community property law by entering into prenuptial or postnuptial agreements. These agreements cannot establish child custody arrangements, but they can be used to determine how assets like cryptocurrencies should be divided.

Essentially fair

Prenuptial and postnuptial agreements are sometimes challenged in court, and these legal actions are usually successful if the document in question is deemed to be grossly unfair. If you want to enter into a prenuptial or postnuptial agreement that will withstand judicial scrutiny, you should negotiate in good faith and strive for terms that are essentially fair. You should also revise your agreement to keep the terms fair when the values of assets rise or fall significantly.