What Happens to Your Bitcoin in a Divorce

[tabas]

Should Bitcoin held in a personal wallet be treated differently from other assets during divorce proceedings?

What are your thoughts on this.

If there's a prenuptial agreement and both parties have signed before the wedding, then it won't be included. Otherwise, if that holding has been kept a secret then the court will not know so as the partner. But if they find it out, it is an asset and every asset during their married period will be divided to each of them, this is what I understand though and it still depends on the court ruling during the trials.

For those who may say don’t tell your spouse you are accumulating and holding bitcoin, what if you die unexpected what happens to all your bitcoin.

It's all gone forever then and adds up to the amount of lost bitcoins forever.

[zasad@]

I think there are two ways if you want to save your property, not just coins. I am not married, so I can't feel the urgency of it but I am interested in almost everything haha. So it also reminds me of one case, when Achraf Hakimi, the Moroccan footballer, named everything to his mom so his wife can't take it all because he already sensed that she is after his money. Although this case is still not confirmed as to whether his wife got anything or not, because story spread like wildfire that no one actually checked if it was even true.

Anyway this works, but it also depends on the court, judge, jurisdiction, they can do whatever they want according to the case and facts presented. It also depends on the lawyer's ability.

So one is to transfer wealth to someone whom you trust, like your mother and father. But the final decision is based on the jurisdiction.

The second one is to gift those coins to yourself. The gift belongs to only you, they are not considered marital property, so you are not obligated to give any share of it to your partner but it is also subject to jurisdiction so if anyone wants to save themselves from losing their coins to partners who are just after your money, they must seek help from lawyers who know how to handle things like this. But if your partner is trusted, and you think she/he is not after your money, because how can she/he if you will hide your portfolio from her and you must hide.

In every jurisdiction, there are limits on the value of gifts, and gifts are not subject to division upon divorce.
A $40,000 gift is fine, but a $1 million gift could be viewed as an attempt to deprive a spouse of their share of the assets.
I personally witnessed a case where a husband gifted a country house to his mother a year before the divorce, the wife then presented court documents proving she had paid for renovations herself and demanded reimbursement for 50% of the house's value (and she won the case).
Two can play at that game these legal proceedings are very complex.

[Faisal2202]

In every jurisdiction, there are limits on the value of gifts, and gifts are not subject to division upon divorce.
A $40,000 gift is fine, but a $1 million gift could be viewed as an attempt to deprive a spouse of their share of the assets.
I personally witnessed a case where a husband gifted a country house to his mother a year before the divorce, the wife then presented court documents proving she had paid for renovations herself and demanded reimbursement for 50% of the house's value (and she won the case).
Two can play at that game these legal proceedings are very complex.

Well, in this particular case, if she really had the proof that she paid her own money, then that's a different thing. Most of the members in this thread don't want to share their bought BTC with their spouses if anything happens. Also, the divorce rate has increased incredibly higher in the last two to three years, and now it has become a trend in my country as it was not this high before.

That's why people are now careful in declaring their assets, they try to hide them, and mostly women partners don't work. Even if they work, their money is not used for any responsibility because that is on the male partner, so she keeps the whole money, although voluntarily she can contribute to the house, but by law she is not forced. So men might save themselves from cases like this one particularly.

Although the cases that hurt me more are when both buy the house, he spends the money, she just has a baby, and quickly after having the baby she files for divorce just to get the house. This has been the trend for a long time though in Western countries, but slowly it has increased here too.

[zasad@]

In every jurisdiction, there are limits on the value of gifts, and gifts are not subject to division upon divorce.
A $40,000 gift is fine, but a $1 million gift could be viewed as an attempt to deprive a spouse of their share of the assets.
I personally witnessed a case where a husband gifted a country house to his mother a year before the divorce, the wife then presented court documents proving she had paid for renovations herself and demanded reimbursement for 50% of the house's value (and she won the case).
Two can play at that game these legal proceedings are very complex.

Well, in this particular case, if she really had the proof that she paid her own money, then that's a different thing. Most of the members in this thread don't want to share their bought BTC with their spouses if anything happens. Also, the divorce rate has increased incredibly higher in the last two to three years, and now it has become a trend in my country as it was not this high before.

That's why people are now careful in declaring their assets, they try to hide them, and mostly women partners don't work. Even if they work, their money is not used for any responsibility because that is on the male partner, so she keeps the whole money, although voluntarily she can contribute to the house, but by law she is not forced. So men might save themselves from cases like this one particularly.

Although the cases that hurt me more are when both buy the house, he spends the money, she just has a baby, and quickly after having the baby she files for divorce just to get the house. This has been the trend for a long time though in Western countries, but slowly it has increased here too.

Lawyers prefer to discuss specific cases rather than the general situation. I often see people choosing to live together without formalizing their marriage. If a woman does not have an official husband, she may be eligible for a higher child-rearing allowance. However, from a legal standpoint, if the couple separates, the woman would have a chance of securing a share of the property acquired while they lived together through court proceedings.

[Faisal2202]

Lawyers prefer to discuss specific cases rather than the general situation. I often see people choosing to live together without formalizing their marriage. If a woman does not have an official husband, she may be eligible for a higher child-rearing allowance. However, from a legal standpoint, if the couple separates, the woman would have a chance of securing a share of the property acquired while they lived together through court proceedings.

You just touched an important point, like how people game the system. People who register their marriages come under different laws, but some people game the system by not filing for a marriage certificate, they fake everything. Couples live in the same home, like a normal family, but they intentionally don't register civil partnerships. So they can make it look legit, one partner will use a different mailing address to show he is not supporting the family, his or her income will be reported wrong as well.

So one partner is off the books, the government pays allowances, child subsidies, and housing support to the other single parent. Another thing that these single parents do who are faking cohabitation, they show their kids as if they are dumb, they make them get lower grades, so they can get more allowances for special kids and other programs.

This is not everywhere though, it depends on the people who know about it and governments who give such benefits. But really, we are worried about how to be a couple and save money from each other, government is failing to save money from such players haha.

[m2017]

" What Happens to Your Bitcoin in a Divorce?" - What will happen? Of course, everything will go to the wife - down to the last satoshi.

A friend of mine asked me the question today, he said what will happen to my bitcoin in a divorce?

Yes, we know those stories about a "friend who has a question" all too well. How long have you been married?

Some people have not actually thought about this because there mind have not gone to that area,

Because they naively believe that marriage is for a lifetime. Just look at the divorce statistics, and it becomes clear that modern marriage is a temporary phenomenon - often a very short-lived one. And an extremely disadvantageous one.

however in a case like this even if you are the only person that has access to that wallet that the bitcoin is, it is not automatically excluded from consideration during divorce proceedings.

If bitcoin is not officially recognized by law in the country, why shouldn't it be excluded from divorce proceedings? If bitcoin doesn't exist in the eyes of the law, then it doesn't exist as an asset during a divorce either. Otherwise, end up with a double standard: the regulator pretends bitcoin doesn't exist, yet suddenly "remembers" its existence when it comes time to divide assets (and also when paying taxes).

Simply don't tell your spouse about the existence of your wallet. After all, it creates an unnecessary temptation for her to take it from you and destroy the marriage.

The court is actually going to look at, when the Bitcoin was acquired, the source of the funds, the contributions of both spouses, the evidence of ownership or control, the value of the asset and many more depending on the country.

All this will be considered before the court will decide on what to do or rule.

However you all should understand that how the court will treat the matter is actually based on your jurisdiction and how your law operates.

Oh, don't make me laugh. Maybe courts work that way in the US, but in other countries, things are much simpler. Upon divorce, you split "half" with your wife. By the way, does the spouse have a right to half of her husband's debts? Have to follow the letter of the law and split the husband's debts with her, too.

Should Bitcoin held in a personal wallet be treated differently from other assets during divorce proceedings?

What are your thoughts on this.

If a given country has no laws regarding bitcoin, the court should "fail to see" these assets held by the spouse.

For those who may say don’t tell your spouse you are accumulating and holding bitcoin, what if you die unexpected what happens to all your bitcoin.

They will pass to worthy heirs. Nothing prevents one from leaving a will (in the form of delayed access to the wallet). If a spouse proves their loyalty and reliability during the marriage, they too can claim the right of inheritance. If not, well, then, what bitcoins is there for them?