German Divorce Laws Complicate Cryptocurrency Equalisation
When it comes to divorce and cryptocurrency, many people ask the wrong question first. They wonder if they have to split their coins, but under German law, the answer is often no. The assets themselves remain with one spouse, but the increase in value accumulated during the marriage is divided as a sum of money.
This 'equalisation of accrued gains' can be complex, especially when it comes to self-custodied wallets and exchange accounts. For example, if someone bought Bitcoin in 2019 and married in 2021, those coins continue to belong to them alone, but their value is calculated as part of the equalisation claim.
The calculation consists of three figures: initial assets (assets at the time of marriage), final assets (assets at the end of the marriage), and accrued gain. The excess of the accrued gain is divided in euros, calculated on a single day.