Cryptocurrency has evolved from a niche financial asset into a mainstream investment—and that has created new challenges in divorce proceedings across Florida, including in Daytona Beach. With assets like Bitcoin, Ethereum, and other digital tokens now being widely held, spouses and their attorneys must understand how these digital currencies impact marital property division, disclosure obligations, and financial settlements.
If you or your spouse owns cryptocurrency, it’s essential to work with an experienced divorce attorney in Daytona Beach who understands how to locate, value, and divide these assets fairly.
What Counts as Marital Property in Florida?
Florida is an equitable distribution state, meaning marital assets are divided fairly—but not always equally—during a divorce. This includes:
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Assets acquired during the marriage
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Appreciation in value of pre-marital assets due to marital effort
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Income earned by either spouse during the marriage
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Contributions to investments, even if only in one spouse’s name
If cryptocurrency was purchased or mined during the marriage, it’s likely considered marital property—subject to division by the court.
Why Cryptocurrency Is Hard to Trace in Divorce
Unlike bank accounts or retirement funds, cryptocurrency can be more difficult to track for several reasons:
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Wallets can be anonymous or unregistered
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Transactions occur on decentralized exchanges
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Crypto assets can be transferred quickly without oversight
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Paper trails may not exist like they do with traditional bank statements
This makes it easier for a spouse to hide digital assets during divorce proceedings. An experienced divorce attorney in Daytona Beach can work with forensic accountants to uncover undisclosed cryptocurrency holdings.
Full Financial Disclosure Is Required by Law
In Florida, both spouses are required to provide full financial disclosure during divorce. This includes:
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A sworn financial affidavit
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Account statements
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Investment portfolios
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Digital asset records (including crypto holdings)
Failing to disclose cryptocurrency can be considered fraud. If discovered later, the court may penalize the dishonest party, including awarding the full value of the hidden assets to the other spouse. Your divorce attorney can issue discovery requests or subpoenas if you suspect assets are being concealed.
How to Identify Cryptocurrency in a Divorce Case
To determine if your spouse holds cryptocurrency, your divorce attorney in Daytona Beach may look for signs such as:
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Large transfers to platforms like Coinbase, Binance, or Kraken
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Mining-related hardware or electricity spikes
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Wallet addresses and seed phrases
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Bank statements showing crypto-related purchases
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Crypto apps installed on phones or computers
If you’re the spouse who holds crypto, disclose it fully. Courts may view honest reporting more favorably, especially when asset division is negotiated outside court.
Valuing Cryptocurrency Fairly
Unlike fixed-income assets or property, cryptocurrency values fluctuate rapidly. That’s why timing is critical when determining value. Your attorney may recommend:
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Using the value on the date of filing for divorce
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Choosing the value on the date of trial
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Averaging the value over a set period
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Using a third-party valuation expert
Due to this volatility, many divorce attorneys in Daytona Beach negotiate settlements that account for market changes. Some couples opt to divide crypto holdings in-kind, allowing each to share in future gains or losses.
Splitting Cryptocurrency in Divorce
There are several ways cryptocurrency can be divided in a divorce:
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In-Kind Transfer
The crypto assets are split directly between spouses, typically by transferring from one wallet to another. This avoids liquidation fees and preserves the investment. -
Buyout Option
One spouse buys out the other’s share of the crypto in cash or with other marital assets, such as property or retirement funds. -
Court-Ordered Division
If spouses can’t agree, the court will assign value and order an equitable division—potentially requiring liquidation.
Your divorce attorney in Daytona Beach can help you decide the best approach based on your financial goals and market conditions.
Tax Implications of Cryptocurrency Division
Cryptocurrency is treated as property by the IRS. That means:
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Transferring crypto to a spouse as part of a divorce settlement is not a taxable event.
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Selling or liquidating cryptocurrency to divide the value may trigger capital gains taxes.
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Future gains on received crypto may be subject to long- or short-term tax depending on how long it’s held.
It’s important to consult with a tax advisor during your divorce, especially when crypto is involved, to avoid unexpected tax liabilities.
Protecting Yourself From Future Risk
To prevent future disputes or losses related to crypto assets, include clear terms in your divorce settlement agreement, such as:
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Wallet addresses and asset quantities
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Division of future gains or losses
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Protocols for accessing digital wallets
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Tax responsibilities and liabilities
Don’t forget to update your estate plan to reflect new holdings or ownership changes. A divorce attorney in Daytona Beach can work alongside your financial planner to protect your long-term interests.
Choose a Divorce Attorney Who Understands Crypto
As cryptocurrency becomes more common, so do legal complications during divorce. Daytona Beach residents should not assume digital assets are off the radar—they carry real value and legal weight. Failing to disclose or divide them properly can result in legal penalties or financial loss.
If you or your spouse own crypto, it’s essential to work with a divorce attorney in Daytona Beach who is well-versed in digital assets and their legal implications. From discovery to valuation to equitable division, having the right legal partner ensures a transparent and fair process.