Davon Barrett Quoted by CNBC on How to Divide Cryptocurrency in a Divorce
By: Francis Financial
May 28, 2021
Davon Barrett, Certified Financial Planner and Lead Advisor at Francis Financial, was quoted in a CNBC article on the complications of dividing cryptocurrency in divorce settlements.
“Cryptocurrency has added a layer of complexity,” says Barrett. As digital currency becomes more accepted and both small and large investors are turning to cryptocurrency as an investment option, how to split holdings may feel like a new frontier for couples considering divorce.
The first recommendation is to find a divorce attorney with expertise in digital currency, as there are many factors to consider when dividing cryptocurrency in a divorce settlement, including figuring out the value of the investment while the market wildly fluctuates. To address this, couples may want to have a volatility formula built into the divorce contract. A divorce attorney with cryptocurrency experience will have specialized knowledge and insights such as this to help guide you through the process.
Another issue is long-term capital gain taxes on early bitcoin investments that have experienced significant growth. “As couples negotiate, they may need to factor in their post-divorce tax bill,” Barrett says. Transferring digital assets also presents a set of unique challenges, which Barrett advises on.
Learn more about the divorce financial planning process and how Francis Financial can help guide you through a divorce with digital currency investments or contact a Certified Divorce Financial Analyst.