What happens to cryptocurrencies in a divorce?
Cryptocurrencies are treated like other assets in the context of a divorce. The decisive factor is whether they belong to the marital savings or assets, as regulated in the Austrian Marriage Act (§ 81 EheG). But what challenges arise in the valuation and division of these digital assets?
1. Cryptocurrencies as an asset component
Cryptocurrencies are considered Assets and must be disclosed in the event of a divorce if they were acquired during the marriage. They then belong to the joint assets, which is divided between the spouses. What is important here is the Date of acquisition: Cryptocurrencies purchased before marriage are generally considered personal property. Even if the cryptocurrencies were acquired before marriage, the To be noted regarding the equalization of accrued gains: Profits from cryptocurrencies generated during the marriage fall under the accrued gains and must be taken into account as part of the asset division.
Challenge: Pseudonymity
Cryptocurrencies are considered anonymous (correct: pseudonymous). This not only makes them harder to track and evaluate. In practice, some partners try to conceal their crypto investments during pending divorces and keep the assets out of the division. To find out whether a partner owns cryptocurrencies, it regularly takes industry knowledge, experience in searching, and the right court motions to compel the disclosure of wallets and transactions.
2. Valuation of Cryptocurrencies
The Rating of cryptocurrencies in the event of a divorce regularly presents a challenge because their value can fluctuate greatly. The following points are crucial here:
- Principle of the fixed effective date: The value of cryptocurrencies is usually determined as of the date of the court decision.
- Market value fluctuations: Volatile prices can cause the asset to gain or lose value within a very short time.
- Expert opinion: It is often necessary to obtain external expert opinions to determine the exact value of the cryptocurrencies.
3. How can cryptocurrencies be divided?
The distribution of cryptocurrencies is done either in physical form (e.g., transfer of a portion of the coins to the other spouse's wallet) or in monetary terms (Equalization payments). The choice of method often depends on the technical knowledge of the parties involved and the specific circumstances of the case.
Frequently Asked Questions
What happens if a spouse conceals cryptocurrencies?
Concealing assets, including cryptocurrencies, can have serious consequences. In practice, we frequently see cases where one spouse tries to hide parts of their crypto assets. To ensure that the spouse also discloses all cryptocurrency holdings, it is recommended to involve experts in blockchain forensics (tracking assets on the blockchain). Those affected should Secure evidence (transaction histories and wallet addresses can constitute admissible evidence in court) and obtain specialized legal advice A lawyer specializing in cryptocurrencies can help track down hidden cryptocurrencies and assert claims.
How do I find out if my partner owns cryptocurrencies?
Since cryptocurrencies can be traded anonymously, it is often difficult to prove their existence. The following steps can help:
- Review bank statements: Transactions to known crypto exchanges can provide clues.
- Review tax documents: Cryptocurrency gains must be taxed in Austria.
- Legal disclosure: As part of the divorce proceedings, courts may order the disclosure of all assets.
Should you suspect that your spouse is concealing the possession of (parts of their) cryptocurrencies, we recommend consulting cryptocurrency experts. We would be happy to assist you in this regard with our blockchain forensics specialists.
Strategies for securing rights in the event of divorce
- Early Disclosure: Transparency regarding all assets, including cryptocurrencies, is essential.
- Commission an expert: An expert can determine the exact value of the cryptocurrencies and thus avoid disputes.
- Seek legal advice: A lawyer with experience in cryptocurrency and divorce law can provide valuable support.
- Secure evidence: Wallet addresses, transaction histories, and bank statements can be crucial evidence.
- Show willingness to negotiate: Out-of-court settlements can often avoid lengthy trials.
Conclusion: Cryptocurrencies require special attention
The treatment of cryptocurrencies in a divorce is a complex issue that requires sound knowledge in both law and the field of digital currencies. With the right strategy and competent support, however, fair solutions can be found that do justice to both parties. Attorney at Law Roman Taudes and his Team are at your disposal for further information and individual consultation at any time office@atb.law or by phone at 01 39 12345 available.
