Dividing Cryptocurrency, Art & Collectibles in Florida Divorce

Dividing Cryptocurrency, Art & Collectibles in Florida Divorce

Quick Answer: Cryptocurrency, art, and collectibles are marital property if acquired during marriage and subject to equitable distribution. These assets present unique challenges: crypto is volatile and can be hidden; art requires professional appraisal; collectibles may have emotional value beyond market value. Proper discovery and expert valuation are essential.

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Cryptocurrency in Florida Divorce

Is Crypto Marital Property?

Yes—cryptocurrency acquired during marriage is marital property under F.S. 61.075, including:

• Bitcoin, Ethereum, and other coins
• NFTs (Non-Fungible Tokens)
• DeFi holdings and staking rewards
• Cryptocurrency earned from mining
• Tokens from airdrops during marriage

Unique Challenges With Crypto

**1. Discovery and Disclosure**

Crypto can be hidden:

• No central authority or statements
• Multiple wallets and exchanges
• Private keys can be memorized
• Hardware wallets are physical devices

How to Find Hidden Crypto:

• Subpoena major exchanges (Coinbase, Kraken, Binance.US)
• Review bank statements for exchange transfers
• Check tax returns for crypto income
• Hire a blockchain forensic expert
• Search devices for wallet software

**2. Valuation Volatility**

Crypto values swing wildly:

Strategies:

• Value at trial date (most common)
• Use average over time period
• Agree on specific date in settlement
• Divide in-kind so both parties share volatility

**3. Tax Implications**

Crypto sales trigger capital gains taxes:

• Cost basis matters (when acquired, at what price)
• Short-term vs. long-term gains
• Losses may offset gains
• Factor taxes into division

Practical Approaches to Crypto Division

**Option 1: Sell and Divide**

• Liquidate crypto holdings
• Divide cash proceeds
• Both parties share tax consequences
• Eliminates volatility risk

**Option 2: In-Kind Division**

• Split crypto holdings directly
• Each party gets wallets with their share
• Defers tax until individual sales
• Both share future volatility

**Option 3: Offset With Other Assets**

• One spouse keeps crypto
• Other spouse gets equivalent value in other assets
• Crypto holder takes on volatility risk
• May need to account for embedded gains

→ **Need help with crypto division?** Our [Marital Settlement Agreement](/services/settlement-agreement) service can structure crypto division with appropriate tax and volatility provisions.

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Art and Fine Art Collections

Valuation Challenges

Art valuation is subjective and requires expertise:

**Factors Affecting Value:**

• Artist reputation and market demand
• Condition and provenance
• Authentication and documentation
• Current market trends
• Comparable sales
• Gallery vs. auction vs. private sale differences

**Who Values Art:**

• Certified appraisers (ASA, AAA credentials)
• Auction house specialists
• Gallery owners (may have conflicts)
• Insurance appraisals (often inflated)

Types of Value

Division Options

**Keep Collection Intact**

• One spouse buys out other's share
• May make sense for cohesive collections
• Maintains provenance and display

**Divide Pieces**

• Each spouse takes specific works
• Must balance values equitably
• Consider each party's preferences

**Sell and Divide**

• Liquidate through auction or gallery
• Share proceeds after costs
• May not achieve appraised values

**Fractional Ownership** (Rare)

• Co-own valuable pieces
• Requires detailed agreement
• Usually not practical long-term

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Jewelry and Watches

Marital vs. Non-Marital Jewelry

**Non-Marital (Protected):**

• Gifts specifically to one spouse
• Inherited pieces
• Owned before marriage

**Marital (Subject to Division):**

• Purchased with marital funds
• Gifts to both spouses
• Acquired during marriage

**The Engagement Ring Question**

Florida generally treats engagement rings as:

• Pre-marital gift (non-marital property)
• Belongs to recipient
• Not typically subject to division

But: Rings upgraded or purchased during marriage may be different.

Valuation Considerations

Jewelry is often worth less than expected:

• Retail markup is substantial
• Resale market is illiquid
• Pawn/dealer offers are low
• Insurance values are replacement cost, not sale price

Get Realistic Valuations:

• Certified gemologist (GIA credentials)
• Estate jewelry buyer (for market price)
• Auction house estimate
• Don't rely on original receipts

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Collectibles: Wine, Cars, Memorabilia, More

Common Collectibles in Divorce

• Wine collections
• Classic cars and motorcycles
• Sports memorabilia
• Coins and stamps
• Guns and firearms
• Antiques and furniture
• Designer items (bags, clothing)
• Musical instruments

Valuation Approaches by Category

**Wine Collections**

• Professional wine appraisers
• Consider storage and provenance
• Market for specific vintages varies
• Auction estimates vs. retail values

**Classic Cars**

• Hagerty, Hemmings, or similar guides
• Professional appraisal for significant value
• Condition reports essential
• Consider restoration costs vs. value

**Sports Memorabilia**

• Authentication is critical (PSA, JSA, Beckett)
• Auction house estimates
• Online marketplace comparables (eBay sold listings)
• Condition grading matters

**Firearms**

• Blue Book of Gun Values
• Licensed appraiser for valuable pieces
• Consider legal restrictions on transfers
• Must comply with ATF regulations

Practical Division Challenges

**Emotional Attachment**

• One spouse may value collection beyond market worth
• Sentimental value isn't legally recognized
• May require negotiation rather than strict valuation

**Illiquidity**

• Collections may be hard to sell quickly
• Market for specific items varies
• Buyer pools can be small
• Selling costs (auction fees, dealer margins) reduce proceeds

**Documentation**

• Keep records of acquisition dates and costs
• Photos with timestamps
• Receipts and provenance documentation
• Authentication certificates

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Discovery Strategies for Hidden Assets

→ **Suspect hidden assets?** Our [Mandatory Disclosures](/services/mandatory-disclosures) service ensures you receive all required financial documentation and can identify gaps.

For Cryptocurrency

• Subpoena exchanges
• Review bank transfers
• Tax return analysis (Form 8949)
• Device forensics
• Blockchain analysis experts

For Art and Collectibles

• Insurance policy review
• Home inventory inspection
• Appraisal history
• Purchase records
• Storage facility records
• Gallery relationship records

Red Flags Suggesting Hidden Items

• Discrepancies between lifestyle and disclosed assets
• Insurance coverage for undisclosed items
• References to collections in emails/texts
• Storage unit rentals
• Unusual cash withdrawals

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Tax Considerations

Capital Gains

• Selling appreciated assets triggers taxes
• Long-term vs. short-term rates apply
• Factor taxes into offset calculations

Cost Basis

• Document original purchase price
• Crypto: specific identification vs. FIFO
• Art: include authentication and restoration costs

Charitable Donations

• Donating appreciated art can benefit both parties
• Deduction based on fair market value
• Must follow IRS substantiation rules

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Expert Witnesses You May Need

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Get Help With Complex Assets

Unique assets require specialized knowledge. Schedule a $95 Strategy Session to discuss your cryptocurrency, art, or collectibles.