How Is Cryptocurrency Divided in Illinois Divorce?

March 3rd, 2025 by Tiffany Hughes

Cryptocurrency, once a niche investment, has now become a significant asset class for many individuals. As the popularity of digital currencies like Bitcoin, Ethereum, and others continues to rise, they are increasingly becoming subject to division of assets in divorce proceedings. However, dividing cryptocurrency assets presents unique challenges and considerations, especially within the legal framework of Illinois.

How is Marital Property Divided in a Divorce?

In Illinois, marital property is subject to equitable distribution upon divorce. Equitable distribution means that, in a division of assets, any assets acquired during the marriage, including digital assets such as Bitcoin, Ethereum, and other cryptocurrency, are typically divided fairly but not necessarily equally between spouses. Cryptocurrency acquired by either spouse during the marriage is generally considered marital property, regardless of whose name is on the account or wallet.

How is Cryptocurrency Valued?

One of the primary challenges in dividing cryptocurrency assets during Illinois divorce is accurately valuing digital assets such as Bitcoin, Ethereum, and other cryptocurrency. Cryptocurrency markets are notoriously volatile, with prices fluctuating rapidly. Determining the value of cryptocurrency at the time of divorce can be complex, and it may require the expertise of financial professionals familiar with digital assets.

In Illinois divorce proceedings, both spouses are required to provide full financial disclosure, including disclosing cryptocurrency assets. Failure to disclose cryptocurrency assets can have serious legal consequences and may result in penalties or sanctions imposed by the court. It’s essential for both parties to be transparent about their cryptocurrency assets to ensure a fair division of assets.

How is Cryptocurrency Divided?

When it comes to dividing cryptocurrency assets in Illinois divorce, couples have several options:

1. Direct Division of Assets: Couples may choose to divide cryptocurrency assets directly, with each spouse receiving a portion of the digital currency based on its current value. This approach requires careful consideration of tax implications in dividing assets and may involve transferring cryptocurrency between wallets or accounts.
2. Offsetting Other Assets: In some cases, one spouse may retain the full value of cryptocurrency assets while the other spouse receives a larger share of other marital assets to offset the value. This approach can help maintain the overall balance of asset division while avoiding the need to divide cryptocurrency assets directly.
3. Buyout: One spouse may buy out the other spouse’s share of cryptocurrency assets by transferring other assets of equivalent value. This approach allows one spouse to retain ownership of the cryptocurrency while providing fair compensation to the other spouse for their share.

When dividing cryptocurrency in Illinois divorce, it’s crucial to consider any tax implications in dividing assets, transfer fees, and the potential for future appreciation or depreciation of the digital assets. Consulting with a knowledgeable Illinois divorce attorney who understands cryptocurrency and its legal implications can help ensure that your rights and interests are protected during the division of assets process.

Need More Information or Representation?

If you are filing for divorce in Illinois and have cryptocurrency, give The Law Office of Tiffany M. Hughes, P.C. a call today at 773-893-0228 for a confidential, complimentary 30-minute phone consultation or email Tiffany Hughes directly at Tiffanyhughes@thugheslaw.com. Our entire practice is solely dedicated to the area of family law. We are highly experienced in providing legal representation to anyone who is getting an Illinois divorce, is wanting to know how marital property is divided in a divorce, owns digital assets such as Bitcoin, Ethereum, and other cryptocurrency, is needing help negotiating a division of assets in a divorce, is wanting to learn how cryptocurrency is valued, is curious about the tax implication of dividing assets such as Bitcoin, Ethereum, and other cryptocurrency, or is seeking assistance complying with the rules of discovery by disclosing cryptocurrency assets.

      About Tiffany M. Hughes, Divorce Attorney, Principal, Managing Partner, The Law Office of Tiffany M. Hughes, P.C.:

Tiffany M. Hughes is a divorce attorney and Managing Partner of The Law office of Tiffany M. Hughes. Recognized as a Top 100 Lawyer in Lawyers Magazine in 2018 and 2019, Super Lawyer from 2016 to date, and in addition to numerous other accolades, Ms. Hughes represents individuals in all aspects of family and matrimonial law proceedings, including litigation, mediation, allocation of parental responsibility (formerly known as custody), parentage, divorce and other child-related matters.

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