Finding and Tracking Cryptocurrency in Louisiana Divorce (2024)

Finding and Tracking Cryptocurrency in Louisiana Divorce (2024)

Virtually every divorce involves some form of asset division, but a growing number involve some form of cryptocurrency. Since this technology is still quite new, it can be difficult for traditional divorce attorneys to assist with finding and tracking cryptocurrency in a Louisiana divorce. Fortunately, attorneys well-versed in cryptocurrency, NFTs, and other digital assets and their protection are available to assist you during your divorce.

Why Is Cryptocurrency So Difficult to Find?

One of the main advantages of cryptocurrency over other forms of assets is its relative anonymity. Cryptocurrency is stored in a digital wallet, and each wallet has a public key to give to others to replace personally identifiable information. This key can be used to find the user’s address, which shows an individual’s transactions on the blockchain.

Since keys are used in the place of personal information, it can be difficult to determine how much an individual owns in cryptocurrency without knowing their wallet information. Even if you know the person’s financial details and bank account information, it is not necessarily tied to a cryptocurrency wallet.

How to Find a Spouse’s Digital Assets

While it can be difficult to find the cryptocurrency wallets of individual people, there are some patterns of behavior that can point to the purchase of digital assets, including:

  • Reviewing Financial Documents: If a spouse purchased cryptocurrency, you might be able to find the transaction history on a bank statement or credit card bill. Cryptocurrency must also be reported to the IRS, so tax documents might also play a role.
  • Documenting Strange Transactions: It might seem suspicious if a spouse suddenly has a large surplus of money or if some of their assets mysteriously disappear. These transactions aren’t always the result of cryptocurrency, but they should still be examined to make sure other assets are not being hidden.
  • Monitoring Email Accounts: Some cryptocurrency transactions involve records that show up in a person’s email account. This could provide wallet information, as well as records of how much money was invested into an account.

This process can be made much easier with the help of a cryptocurrency attorney. A lawyer who is well-versed in digital assets can expedite the search because they already know what to look for.

Why Is Finding Cryptocurrency in a Divorce Important?

Finding and documenting cryptocurrency is important because it could play a large role in asset division. The state of Louisiana follows community property laws, which means that both the property and proceeds from property acquired during a marriage are split evenly unless the couple can negotiate another agreement.

The impact of cryptocurrency on property division could depend on when it was valued due to its high volatility. The valuation date can be determined by both spouses as long as they are both in agreement. However, some spouses are unable to reach an agreement on a cryptocurrency’s valuation date. This makes working with an attorney who understands cryptocurrency an important part of the asset division process.

Cryptocurrency could even influence spousal and child support. If the owner of cryptocurrency is determined to be the non-custodial parent, the amount they have might impact their adjusted gross income, which could impact how much they must pay in child support. If cryptocurrency was hidden at the time when child support was calculated and revealed at a later date, a child support modification order could increase the non-custodial parent’s obligations.


Q: Can My Wife Take My Crypto in a Divorce in Louisiana?

A: A spouse can take crypto in a divorce, depending on when it was acquired. In Louisiana, assets that were acquired during a marriage are considered community property and are eligible to be split between spouses. If it was acquired before the marriage, this might make it separate property. However, the recency of cryptocurrency and the regulations surrounding it might affect how it is split during your divorce, so contact an attorney for more details.

Q: How Do You Divide Cryptocurrency in Divorce in Louisiana?

A: How you divide cryptocurrency in a divorce in Louisiana depends on when it was acquired. If it was before the marriage, this means that community property law applies. As a result, assets that were obtained during a marriage are typically split 50/50 during a divorce. There are some exceptions to this rule if both spouses agree on turning the community property into separate property, but this takes additional forms and court petitions.

Q: Are Cryptocurrency Transactions Traceable in a Divorce?

A: Cryptocurrency transactions could be traceable in a divorce, as they are all recorded on the blockchain, which is a publicly available ledger. However, each person has a wallet ID that is used to record the transaction instead of their personal information.

In order to reveal that individual’s wallet ID and their transactions, it might be necessary to issue a subpoena to retrieve those records. If you suspect that your spouse might have cryptocurrency while filing for divorce, mention this to your attorney.

Q: How Do I Protect My Cryptocurrency Assets in a Divorce?

A: A great way to protect any asset in a divorce, including cryptocurrency, is with either a prenuptial or postnuptial agreement. Both of these agreements are similar, with the former made before and the latter made during the marriage. Establishing a prior agreement before a divorce can prevent some assets from becoming community property.

Dedicated Cryptocurrency Assistance in Jefferson Parish

Filing for divorce is often more difficult when digital assets are involved. This is why it is so important to work with a legal team that understands cryptocurrency. They can make sure both your physical and digital assets are protected.

The Bradley Law Firm is one of the few law offices in the New Orleans metro area to offer targeted assistance with digital assets. Their experience with blockchain technologies like cryptocurrency and NFTs can help protect your assets in a divorce. The firm aims to provide cost-effective legal solutions to both individuals and businesses throughout Jefferson Parish and New Orleans.

Schedule a consultation with The Bradley Law Firm for more information on how to manage your digital assets, including cryptocurrency, NFTs, and other blockchain technologies, during divorce.

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