Couples Seeking Divorce Faces Legal Dispute Over Cryptocurrency
Bitcoin and other Cryptocurrency takes centre stage as unusual legal battles are now been faced by couples seeking to divorce.
The legal case involves a dispute over cryptocurrency among three couples looking to separate.
A Business Insider Post claims that the spouses are demanding full disclosure of cryptocurrency stocks to ensure equitable sharing of these digital assets as part of the divorce process. The only problem is that there are no precedents or laws to guide such a process, and this is another amazing reminder of the underdeveloped regulatory environment of the cryptocurrency.
The lack of regulation around digital currency means that there is little legal cover for those who want to protect their assets online in the event of a divorce. Among the three cases handled by the UK law firm, Royds Withy King, One Particular couple is reported to own a fortune of about $830,000 in cryptocurrencies that they are currently struggling to agree how to split. Obviously, in the course of the divorce, the woman wants full disclosure and sharing of Bitcoin assets.
With the rise of Bitcoin and the cryptocurrency market in general, the days when digital assets were considered invaluable is no more. Today, Bitcoin and other cryptocurrencies are even considered more valuable than most other assets. However, a problem with cryptocurrencies is the lack of regulation and the unavailability of laws to manage the civil conflicts that are pervasive in asset management cases. The news of a man who was unable to get his deceased son’s bitcoin monies was recently released in another case where there were no specific laws governing the crypto-space.
Legal experts believe such cases will keep reoccuring. One associate at Royd’s Withy King, Vandana Chitroda, was quoted as saying;
“this is just the beginning and there are more and more cases like this in the near future”.
Vandana believes that the growing popularity of cryptocurrencies will make them a big part of settling many divorce cases. As the divorce rate is well over 50% in many developed countries, it is almost certain that some of them will be a litigation on cryptocurrency. Legal experts such as Vandana advise people who invest in cryptocurrency or whose spouses have invested in cryptocurrencies and who are seeking divorce should seek appropriate legal advice.
While some investors of cryptocurrency are opposed to government interference on its operations, there is no doubt that regulations are needed to make the market successful.
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