Dividing Cryptocurrency in a Washington Divorce

Cryptocurrency has grown from a niche investment into a mainstream asset class, and it's showing up more often in divorce cases. If you or your spouse owns Bitcoin, Ethereum, or other digital currencies, it’s important to understand how these assets are handled under Washington divorce law.

Like any other financial asset, cryptocurrency must be identified, valued, and divided fairly. But because it’s digital, volatile, and sometimes anonymous, dividing it can present unique challenges.

Is Cryptocurrency Considered Marital Property?

In Washington, a community property state, most assets acquired during the marriage are presumed to be jointly owned, regardless of who owns the asset. That includes cryptocurrency purchased with marital funds.

If one spouse acquired cryptocurrency before the marriage or using separate property, that portion may be considered separate.  In that event, a proper tracing should be performed to ensure an accurate apportionment of marital property.

Challenges in Identifying Cryptocurrency Holdings

Unlike a traditional bank or investment account, cryptocurrency can be stored in digital wallets or on exchanges that may not be immediately visible during initial disclosures. If you suspect your spouse owns cryptocurrency but hasn’t disclosed it, your attorney can use formal discovery tools, such as:

• Requests for account statements or wallet addresses
  
  
• Subpoenas to major cryptocurrency exchanges
  
  
• Analysis of bank transfers or blockchain records

Failing to disclose cryptocurrency holdings during a divorce can result in court sanctions.

How Is Cryptocurrency Valued in Divorce?

Cryptocurrency’s value is notoriously volatile, and prices can swing dramatically in a matter of hours or days. To deal with this, parties may:

• Use the market value on a specific date (often the date of separation or trial)
  
  
• Agree to split the actual crypto instead of converting it to cash
  
  
• Revisit valuations closer to the finalization of the divorce to account for market changes

The approach you take depends on the size of the holding, your financial goals, and your comfort with crypto investment risk.

Dividing Cryptocurrency: Equal Split or Offset?

There are two main ways to divide cryptocurrency in a divorce:

1. Transfer the crypto directly. If both spouses are comfortable managing digital wallets, crypto can be split and transferred, preserving the asset in its current form.
   
   
2. Offset the value. One spouse keeps the cryptocurrency, and the other receives an equal-value asset (like cash, investments, or property). This avoids dealing with crypto directly but may raise fairness issues if the value changes quickly.

In either case, it’s important to document the division clearly in the final divorce decree to avoid future disputes.

Protect Yourself with Proper Documentation

To ensure a smooth division of cryptocurrency, it’s helpful to include in your divorce paperwork:

• The exact type and amount of cryptocurrency held
  
  
• Wallet addresses or exchange accounts
  
  
• Agreed-upon valuation dates
  
  
• Instructions for transfer or liquidation
  
  
• A plan for resolving future value disputes, if needed

This level of detail can prevent confusion or conflict later on.

Work with a Washington Divorce Attorney Who Understands Digital Assets

Cryptocurrency is a relatively new issue in divorce, and not all attorneys are familiar with how to handle it properly. At Magnuson Lowell, P.S., we stay informed on evolving digital asset trends and help our clients navigate the legal and financial complexity of dividing crypto.

We offer free telephone case evaluations. Contact us today to discuss your divorce and how we can help protect your interests in the digital world.

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Divorce is rarely straightforward, and when one spouse has a disability, the process can become even more complex - emotionally, legally, and financially. Whether the disability is physical, mental, or cognitive, it can impact everything from spousal support to property division and parenting plans. Understanding how disability factors into divorce can help you prepare for the unique challenges ahead.

Spousal Support May Play a Larger Role

In Washington, spousal maintenance (also called alimony) is determined based on one spouse’s need and the other’s ability to pay. When a disabled spouse is involved, courts often give additional weight to:

• The disabled spouse’s inability to earn a living wage
  
  
• Their ongoing medical expenses and special care needs
  
  
• The duration and stability of their disability
  
  
• The length of the marriage and standard of living during the marriage

In many cases, spousal support awards may be higher or last longer than they would in a typical divorce to ensure the disabled spouse is not left financially vulnerable.

Dividing Property and Access to Benefits

Marital property is still subject to Washington’s community property laws, but disability-related assets and benefits may require special handling. Important issues to consider include:

• Protecting eligibility for government assistance programs like Medicaid, Supplemental Security Income (SSI), or other benefits that are income or asset-sensitive.
  
  
• Recognizing that some disability benefits are not considered divisible marital property, while others may be partly subject to division.
  
  
• Deciding who will be responsible for maintaining specialized medical equipment or home modifications made during the marriage.

An experienced divorce attorney can help ensure that dividing assets does not unintentionally disqualify a disabled spouse from receiving necessary benefits.

Parenting Plans and Custody Considerations

When children are involved, the court’s focus remains on the best interests of the child. A parent’s disability alone is not a reason to deny custody or visitation rights. However, the court will consider:

• The parent's ability to safely care for the child
  
  
• Whether accommodations are needed to assist the disabled parent in their parenting responsibilities
  
  
• Any impact the disability may have on the child’s day-to-day care

If necessary, parenting plans can be customized to provide extra support while preserving a strong parent-child relationship.

Negotiating with Compassion and Realism

Divorcing when disability or illness is involved often requires more patience, flexibility, and creativity in negotiations. Both spouses should focus on finding solutions that allow the disabled individual to maintain independence and dignity while fairly dividing shared responsibilities and resources.

Mediation or collaborative divorce may offer a less adversarial path, especially when both sides are willing to work together to craft practical and compassionate agreements.

Work with an Experienced Washington Divorce Attorney

If you or your spouse is disabled and considering divorce, it’s important to work with an attorney who understands the complex legal and financial issues involved. At Magnuson Lowell, P.S., we offer thoughtful, experienced representation for clients facing these challenges.

We offer free telephone case evaluations to help you understand your options and plan for the future with confidence. Contact us today to discuss your situation and learn how we can help 425-800-0582

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If you’re filing for divorce in King County or Snohomish County, you may be surprised to learn that a financial restraining order is automatically issued at the start of your case. These orders aren’t meant to punish either party. They exist to preserve the status quo and protect both spouses from financial harm while the divorce is pending.

At Magnuson Lowell, P.S., we often receive questions about what these orders mean and how they affect day-to-day life. Here's what you need to know about the purpose, benefits, and practical impact of financial restraining orders during divorce.

What Is a Financial Restraining Order?

A financial restraining order is a court order that limits both spouses from taking certain financial actions without the other party’s agreement or court approval. In King and Snohomish Counties, this order is issued automatically when the divorce case is filed and remains in effect throughout the case.

The order typically prevents either party from:

• Selling, transferring, or giving away property
  
  
• Draining bank or retirement accounts
  
  
• Changing or canceling insurance policies
  
  
• Incurring large debts in the other party’s name
  
  
• Altering beneficiary designations on life insurance or retirement accounts

Why Are These Orders Issued Automatically?

Divorces often come with heightened emotions, and some spouses may be tempted to make sudden financial decisions out of fear, anger, or spite. The purpose of the restraining order is to:

• Protect marital property from being hidden, moved, or spent before it can be fairly divided
  
  
• Prevent financial surprises that could harm one party’s ability to support themselves
  
  
• Maintain stability while the legal process unfolds
  
  
• Encourage cooperation and transparency between spouses

By applying the same rules to both parties from the beginning, the court ensures a level playing field.

How Does It Affect Daily Life?

Despite its name, a financial restraining order doesn’t completely freeze your finances. You are still allowed to:

• Use funds to pay regular living expenses (e.g., rent, mortgage, groceries, utilities)
  
  
• Maintain and operate your personal or joint bank accounts
  
  
• Continue business operations, if self-employed
  
  
• Hire legal counsel and pay related fees

The order is meant to stop major changes - not routine transactions. If you're unsure whether a specific action is allowed, it's best to speak with your attorney before making financial moves.

What If You Need to Make a Major Financial Change?

There may be times when a larger transaction is necessary, such as selling a jointly owned vehicle, refinancing a loan, or making a significant investment. In those cases, you can:

• Get written agreement from your spouse
  
  
• Request court approval through a motion

The court may often allow transactions that are reasonable and fair, especially if both parties benefit or the action is necessary for financial stability.

What Happens If the Order Is Violated?

Violating a financial restraining order is a serious matter. If one party transfers property, hides money, or otherwise breaches the order, the court may:

• Issue sanctions or fines
  
  
• Require reimbursement of lost funds
  
  
• Award the affected party a larger share of marital assets
  
  
• Hold the violator in contempt of court

These consequences are designed to deter bad behavior and protect both spouses throughout the process.

Speak with a Washington Divorce Attorney

Financial restraining orders provide critical protection during divorce, but it’s important to understand how they apply to your specific situation. At Magnuson Lowell, P.S., we guide our clients through every stage of the divorce process, helping them make informed decisions while complying with all court orders.

We offer free telephone case evaluations 425-800-0576. Contact us today to discuss your divorce and get clear answers about your financial rights and responsibilities.

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