How Is Cryptocurrency Addressed in Illinois Divorce?

 Posted on February 18, 2025 in Divorce

Transitioning from sharing finances and financial responsibilities to handling your affairs on your own can seem very stressful. That is why couples going through a divorce are often anxious about the prospect of dividing their marital estate. While dividing assets can always be complicated, if you have cryptocurrency or other digital assets included in your marital estate, it can be even more so. To understand how digital assets are addressed in an Illinois divorce, speak with a seasoned Illinois family law attorney. 

When Is Cryptocurrency Considered Marital Property?

In Illinois, marital property is anything that a couple acquired during their marriage, regardless of who actually acquired it. If either spouse in a married couple bought cryptocurrency or other digital assets under their name, it is likely considered marital property and is subject to equitable division if the couple gets divorced. 

However, because the value of cryptocurrency can change dramatically and quickly, it differs from a regular bank account or investment portfolio. The fact that it is often stored in private digital wallets also makes it harder to find and evaluate.

Can My Spouse Hide Cryptocurrency During Our Divorce?

While hiding assets is prohibited and is treated very seriously by Illinois law, there is no doubt that some spouses in the midst of a divorce try to do so anyway. Some people try to hide their cryptocurrency during their divorce by taking advantage of the fact that it is not held in an account in a traditional bank and its blockchain transaction records are not easy to access and track. However, reliable legal and financial experts are often able to uncover hidden cryptocurrency to ensure you are not given an unfair divorce settlement.

How Is Cryptocurrency Valued?

Once the cryptocurrency is identified, the next challenge is determining its value, which can change drastically from one day to the next. The value of digital assets is typically determined based on the date of the divorce settlement or another agreed-upon date. This clarification is important and can have a significant impact on the value of your portion of your marital estate.

How Is Cryptocurrency Divided?

Cryptocurrency can be divided in a few different ways, including:

• Selling it and splitting the proceeds

• Transferring a portion to the other spouse

• Offsetting its value by awarding the other spouse other assets, such as a home or retirement account

Schedule a Free Consultation with a Cook County, IL Divorce Lawyer

Since cryptocurrency is still relatively new in the financial and legal spheres, it is crucial to work with a qualified Chicago, IL family law attorney who understands how to address it while protecting your rights. At The Law Office of George J. Skuros, we are dedicated to ensuring that our clients get the outcomes that serve their best interests and we will do everything we can to help you make informed decisions that suit you. Call us at 312-884-1222 to schedule a free consultation.