UK Divorce Cases Are Now Involving Cryptocurrency
February 15, 2018
A London-based law firm called Royds Withy King is advising on three divorce cases that include the division of cryptocurrency assets of the family.
The firm says that its lawyers are working on three divorce processes in which divorcing spouses are trying to split cryptocurrency accumulated during the marriage. It is reported that these cases involve BTC, LTC, XRP and ETH.
Although in two processes divorcing spouses dividing a small sum, in the third case the sum is £600,000. The husband in this family invested £80,000 in cryptocurrency, but last year this sum skyrocketed thanks to the growth of the cryptocurrency market. Now, this sum must be fairly divided between the divorcing couple.
These precedents open a completely new sphere for divorce lawyers, since cryptocurrencies are practically unregulated and are located in the so-called "gray zone" of the legislation of most countries of the world, including the United Kingdom.
Vandana Chitroda, a partner in Royds Withy King believes that these three divorce proceedings are just the beginning, and there will be more such disputes.
She wrote in an email to Business Insider:
"We believe that cryptocurrencies will be a significant feature in a large number of divorces. Whilst cryptocurrencies are volatile, they are not going to go away. It is important that if you believe your husband or wife has invested in or purchased cryptocurrencies, such as Bitcoin, and you are separating, you tell your legal adviser."
It is worth noting that the crypto boom added more work not only to divorce lawyers, but also to tax advisors, as many citizens began to wonder how to account their cryptocurrency profit in accordance with the law.