Ending Soon! Save 33% on All Access

After 'Crypto Winter,' Advice Seeker Regrets Taking Crypto -- and Only Crypto -- In Divorce One letter writer found out the hard way that "one spouse should not carry all the risk-laden assets."

By Gabrielle Bienasz

Opinions expressed by Entrepreneur contributors are their own.

Last week, the Financial Times gave advice to someone who was wondering if they could re-negotiate their divorce — now that "crypto winter" has caused one party to lose more than half of their assets.

"When we negotiated last autumn, the crypto market was riding high and I was convinced it would go higher still, but following the recent crash my digital assets have more than halved in value. I'm now considerably worse off than my ex and worried about my financial future," the advice-seeker wrote.

The advice seeker said that when the divorce was worked out last year, the ex-wife got "the lion's share of my pension and other investments," and the letter writer got the crypto.

The person asked if they could go to court to change the way the assets were split up in the divorce. Crypto has lost about $2 trillion in value since its 2021 high, per CNBC.

In this case, FT's team had some other advice — don't pile yourself up with the crypto.

"Generally, one spouse should not carry all the risk-laden assets, while the other holds those whose value is much less immediately susceptible to market forces (like a family home)," the FT wrote.

The outlet added a court was unlikely to reopen the case. If it did every time an asset changed in value, "then the courts would face a deluge of cases looking to reopen agreed settlements," it wrote.

The issue has begun to come up in divorces in the U.S., too, according to news articles and legal blogs.

"A cryptocurrency wallet, then, is no different than a bank account, retirement fund, or traditional investment account with stock and bond securities when it comes to New Jersey property division," according to a blog from Lawrence Law, a divorce law firm.

You could split up those assets like you would any others, but with a few complications: It's a more volatile asset, and there could be a risk of unpaid taxes or taxes being more easily hidden if the other partner doesn't know as much about crypto. Divorce lawyers could "negotiate an agreement that the value of the crypto assets can be reevaluated before the asset division is final," the blog added.

Gabrielle Bienasz is a staff writer at Entrepreneur. She previously worked at Insider and Inc. Magazine. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

More People Are Exploring Entrepreneurship Because of This Unexpected Reason

More new business applications were filed in 2023 than in any other year so far.

Starting a Business

How to Find the Right Programmers: A Brief Guideline for Startup Founders

For startup founders under a plethora of challenges like timing, investors and changing market demand, it is extremely hard to hire programmers who can deliver.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Data & Recovery

Data Privacy Matters to Your Customers — Show Them It's a Priority For You, Too. Here's How.

Your business can help reassure customers and earn their loyalty by treating all incoming data as valuable.

Business News

TikTok Reportedly Laid Off a 'Large Percentage' of Employees as the App's Fate in the U.S. Remains Unclear

Laid-off TikTok employees were notified Wednesday night through Thursday morning.