Divorcing Couple Embroiled in Custody Battle Over $830,000 in BTC
Law firm Royds Withy King is assisting in three different divorce cases involving crypto.
A divorcing couple in the UK are pitted against each other for the rights to own $830,000 in BTC–the problem? There is absolutely no legal precedent for who gets the Bitcoin in the wake of a divorce.
Apparently, pre-existing custody agreements cannot be applied to digital assets. Just imagine the Bitcoin being shipped back and forth across town to spend one week with dad and one week with mum; it just doesn’t work.
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Terrible humor aside, Business Insider (who originally reported on this sorry tale) explained that the UK-based law firm Royds Withy King is currently assisting clients in three separate divorce cases involving cryptocurrency.
This particular case stands out because of the sheer amount of funds involved. The soon-to-be-ex-husband in the case originally invested $110,000 in cryptocurrency when it was worth less than 15 percent of its current value.
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Crypto Is ‘Not Going to Go Away’, and Neither is Divorce
Vandana Chitroda, partner at Royds Withy King, said that she expects that these are just the first few of what will be many divorce cases involving crypto. “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.”
Chitroda added that although no specific legal structure has been developed to deal with post-divorce distribution of crypto, “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 advisor.”
The divorce cases are another instance in a series of rather strange and unexpected clashes of the digital currency sphere with ‘real-world’ life. As Bitcoin and crypto have become more popular, a series of violent crimes involving the theft of Bitcoin at gunpoint have erupted. On a more positive note, Buddhists developed the ‘Lotos’ network, a coin that is intended to end religious corruption.
As crypto continues its journey throughout 2018 and beyond, there will undoubtedly be even more unusual happenings as the cryptosphere and the rest of the world collide. Enjoy the show–if nothing else, it’s going to be interesting.
The soon-to-be-ex-husband in the case originally invested $110,000
So he put his money into something which turned out to be a good investment. As the wife did not contribute she should not expect a payout. Had the value fallen to just 10% would she have offered to refund the husband 50% costs, i dont think so. Tell the gold digging bitch to fuck off.
From a legal standpoint, I think the questions are:
would cryptocurrency be considered an asset?
Is crypto considered to be a joint asset?
And if so, how do you freeze this asset? It’s not a bank account or credit card.
Crypto is irrevocable once it is transferred. How do you prove fraud if it is transferred to another individual….especially in a different country? Or if it is simply transferred to another wallet not owned by the individual?