FamilyCounsel.ca

Announcements

Back to Announcements

Crypto Currency Quagmire

Erika Hagen
  Crerar Badejo Hagen Family Law Group
   Edmonton, Alberta


The recent surge in interest and investment in BitCoin and other crypto currencies will invariably filter into the family law context - either where the family needs to value the asset they are both aware of, or where one party has used crypto-currencies to attempt to hide wealth. There are even "ATMs" now where one can "deposit" or "buy" crypto currency with cold hard cash.

I am by no means an expert on this subject, but there are a few things I can think of off-hand that we can do to address this on our files:
1) In our retainer letters we can encourage our clients NOT to try such tactics,
2) When we are gathering a client's disclosure, we can make it standard practice to request crypto currency information,
3) The family law bar might consider asking the Rules of Court Committee to adjust the Notice to Disclose Application and standard Schedule A sworn statement to include reference to these types of assets (which could also include Air Miles, etc.), and
4) we can start adding questions about crypto currency related online activities to our standard questions for Questioning.

A keyword search on CanLII has yielded 0 results for "bitcoin" and "crypto currency" - but it is only a matter of time...

If anybody has experience or particular knowledge regarding this subject I'd be fascinated to hear about it in the discussion board!

Although it is a year old and from an American perspective, the following article may be of some assistance:

https://www.huffingtonpost.com/entry/hiding-assets-with-bitcoin-in-divorce_us_58ae640ce4b0ea6ee3d035ca


1 6 years ago

Ken Proudman Executive
 view Arbitrator profile
  BARR LLP
   Edmonton, Alberta


That's definitely an interesting issue. I had one where Bitcoin was purchased several years ago to make a purchase, and because of exchange rates there was a small fraction left over after the sale. At the time the amount was so small that it wasn't worth the effort to convert it back into CAD. Hop to present times though, and it was actually worth a pretty sizeable amount. I think it's one of those categories that if we don't amend our client disclosure questionnaires, a client could easily forget about listing this type of asset.

As least the good news is that valuation is fairly simple, as online currency exchanges track their trading value. Great article!


1 6 years ago - edited 6 years ago

You must log in or sign up to reply to conversations.


Back to Announcements









© 2016 to 2024 Kenneth J. Proudman. DISCLAIMER: The tools, documents, and other information herein are not legal, tax, or accounting advice or opinions. This website contains content and files submitted by third parties, to which you download or view at your own risk. By using this website, you agree to release Kenneth J. Proudman, BARR LLP, and Miller Boileau Family Law Group from all present and future claims and liability, including liability arising from any negligence.