Pryor Cashman Partner Karen M. Platt, a member of the Family Law Group, was quoted in an ABA Journal article examining the growing challenges divorce lawyers face when identifying, tracing and valuing cryptocurrency assets.

In the article, “Dabblers and Distrusters: What Should Divorce Lawyers Know About Hunting Down Crypto Assets?” Karen explained that understanding the individual holding the cryptocurrency is an important first step. She identified two types of crypto investors: “dabblers” and “distrusters.”

“The less complicated type […] is the "dabbler," who has included some crypto in their portfolio because it's cool, or they want to know more about it, or they want their friends to know they have it.”

Karen noted that dabblers tend to hold assets that are easier to trace and are more likely to provide evidence of those assets when requested. “Distrusters,” however, may be drawn to cryptocurrency because they do not trust banks, the government or, in some cases, their partner:

“With distrusters, […] it's more likely there's money that has "been transferred and disappeared.”

She added that a distruster may have hundreds of thousands of dollars hidden and that a forensic accountant may be needed to trace the assets. Karen emphasized the importance of involving the right expert when meaningful cryptocurrency holdings may be at issue:

“It can be important to have an expert involved to make sure that you are digging in[.]”

The article explores how cryptocurrency can complicate divorce proceedings, from disclosure and discovery to valuation and asset division, and highlights the need for family law attorneys to ask targeted questions and consider expert assistance when appropriate.

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