When a couple decides to go their separate ways, the court will divide any shared assets and debts equitably. It is called property division.
As a result of this process, it is apparent that cryptocurrency requires splitting. In that case, the courts consider its value at that moment – which may involve converting it to cash or granting a certain amount of crypto to one of the spouses. Should one party be allocated the cryptocurrency, they will bear any tax liability that might arise from it.
Despite the popularity of cryptocurrency, there are still a few areas for improvement when it comes to categorizing it as real property or personal property, marital asset, or separate asset and determining its exact value due to the volatility in price. Moreover, regulations regarding digital currency can fluctuate swiftly. Thus, both parties should be mindful and stay updated on recent advancements with their legal team’s help.
Source: https://www.blissdivorce.com/resource-center/cryptocurrency-and-divorce-in-california/
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