This past week I spent three days attending and training in the American Academy of Matrimonial Lawyers (“AAML”) National Divorce Conference. To become a fellow in the academy, an attorney must demonstrate an active interest and competency in matrimonial law. Attending this conference gave me the opportunity to seek out knowledge and sharpen my skills and also gave me the opportunity to network and learn from the best family law attorneys around the country. The topics presented and discussed ranged from a deep analysis of how tax law has affected support, to memory training, case review of valuation of income and assets, meeting and questioning valuation experts and discussing transfer of funds to overseas accounts.
One of the most interesting topics discussed was that of cryptocurrency. This not only grabbed my attention but pushed me to do more research on the subject as it is one of the most extraordinary and popular ways to accumulate an income. Cryptocurrency is a digital currency that is built with technology (cryptographic protocols) that make transactions secure. What is interesting about cryptocurrency, unlike actual currency, is that it is not controlled by any government or central authority. One of the most popular of the cryptocurrency is bitcoin.
The value crypto currency fluctuates with the market, so twenty (20) bitcoins will not necessarily equate twenty (20) cents ($.20) or twenty (20) dollars ($20.00), but as of today’s date, May 10, 2019, twenty (20) bitcoins are valued at One Hundred Twenty Eight Thousand Dollars ($128,000.00) dollars. Interesting? Yes, indeed.
What does this mean for you? Well, bitcoins or altcoins, or any crypto coin under Illinois law will be treated like any other asset and income. If the cryptocurrency is being invested in stock then it may be an asset, if there is a dividend or any other benefits arising from the investment of the cryptocurrency, that can be imputed as income. In the world of divorce and support, any and all sources of income can be used to calculate support obligation. If the investment of the crypto coin was made during the marriage, then your spouse may have an interest in that investment, just like any other investment made during the marriage.
If you’d like more information about how income is used to calculate support or how investments are divided in a divorce, please see our blog page for more details, kiswanilawfirm.com/blog or better yet, call our office and speak to the attorneys of Kiswani Law, P.C. at (708) 210-9247.