Author: JGL Law

This blog is designed to provide a basic background to cryptocurrency and its application in divorce cases.

Before September 11, 2001, it was possible to hide money outside of the United States. Tax havens, like the Cayman Islands or Switzerland, provided strict bank secrecy laws that protected the identities of account holders with anonymous or numbered bank accounts. With limited international cooperation, tracing funds and account ownership was difficult. The terrorist attacks on September 11, 2001, changed it all.

Regulations like the USA Patriot Act and international cooperation overhauled the global financial market and made it difficult to hide money outside of the United States.

Today, an alternative to secret banking is Cryptocurrency. Much like Swiss bank accounts, the identity of a cryptocurrency holder is anonymous. Cryptocurrency accounts are not highly regulated, and the holder’s account is identified by a series of numbers and letters and is password protected. This secrecy practice comes with significant risks, dangers, and potential for fraud. Although potentially a very lucrative investment, with the recent increase in cryptocurrency values, recent fraudulent schemes have left many investors’ accounts empty. Indeed, some analysts have likened the risks and rewards of cryptocurrency with playing the slots at casinos.

Background of Cryptocurrency

Lehman Brothers was one of the largest investment banks in the United States. In September 2008, Lehman Brothers filed for bankruptcy. This sent shock waves in the finance industry and is believed to be the genesis to the birth of cryptocurrency.

On October 31, 2008, Satoshi Nakamoto (to date, there has been no confirmation whether Nakamoto is a single person or a group of people) published (on a website) the Bitcoin whitepaper titled “Bitcoin: A Peer-to-Peer Electronic Cash System.” The paper outlined a system of sending funds to each other in peer-to-peer transactions (decentralized) through what is referred to as blockchain. This new mode of banking would allow an individual to send funds to another individual within minutes and without any paperwork or tracing in the traditional banking system.

In January 2009, Bitcoin was made available to the public and could be mined (the process of creating cryptocurrency). Nakamoto mined the first block of the Bitcoin blockchain, known as the “genesis block” or “block 0,” on January 3, 2009. This block contained the text: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks,” which is seen as a comment on the financial instability at the time. It is estimated that Nakamoto holds around 1 million bitcoins, which has a current market value of billions of dollars.

Nakamoto’s creation of Bitcoin has had a profound impact on the financial world, leading to the development of thousands of other cryptocurrencies, such as Ethereum (another Whitepaper issued by Vitalik Buterin in 2014) and the broader blockchain technology.

To date, there are over 2.2. billion available cryptocurrencies, but Bitcoin and Ethereum are the most common.

How do people buy Cryptocurrency

Buying cryptocurrency involves several steps. The first step is to get what is called an “address”, which is the owner’s unique alphanumeric code. This is like a bank account number. The address is automatically generated when a user creates an account. The unique address is used to send funds or to purchase cryptocurrency.

In the U.S., there are 4 different crypto storage options; (1) an exchange, (2) software wallet, (3) hardware wallet, and (4) paper wallet.

An exchange is a third-party website that helps with the buying and selling of cryptocurrency. Popular exchanges include Coinbase, Binance, Kraken, Robinhood and Bitfinex.

A software wallet is an application held on a computer or phone that can generate addresses for the user. A popular software wallet is Metamask.

A hardware wallet is an electronic device (similar to a thumb drive) that is password protected. This is the safest way to hold cryptocurrency because the information is on a USB drive that can safely be ejected from a computer. This keeps your information away from potential computer hackers. A popular hardware wallet is Trezor.

A paper wallet is a piece of paper where a user’s address is recorded. This is also another safe way to hold cryptocurrency. The only downside is that every time you want to access your funds you have to input the address.

After getting an address and deciding where to store your crypto, the next step is choosing a cryptocurrency. The two popular currencies are Bitcoin and Ethereum.

To buy cryptocurrency, you first initiate a request for a transaction using your phone or computer. Then, a group of computers called “miners” confirm that your transaction is valid, and you have funds. Once confirmed by the miners, then your transaction is posted to a blockchain. A blockchain is a public digital ledger that records a crypto transaction across many computers. Each block contains a list of transactions, a timestamp, and a reference (hash) to the previous block.

Some cryptocurrencies have a limited supply, like Bitcoin (BTC), which will only ever have a finite supply of 21 million coins. Other cryptocurrencies have a maximum supply but not a finite supply. Ether’s (ETH) supply, for example, is not hard-capped like Bitcoin, but the issuance of new coins was fixed at 1,600 ETH per day.

In the U.S., the most popular way to purchase Cryptocurrency is through an exchange such as Coinbase or Robinhood. Both Coinbase and Robinhood, while not regulated by the government, are legal entities in the United States. This is not always the case for cryptocurrency which is purchased outside of the United States.

Risks Associated with Cryptocurrency

Cryptocurrency carries several risks and dangers. First and foremost, cryptocurrency prices are highly volatile and can fluctuate dramatically in a short period, which can result in significant losses or gains.

Since the cryptocurrency market is less regulated than traditional financial markets, investor fraud, manipulation, and other illicit activities are very common. A popular manipulation technique is a pump-and-dump scheme, where the price of a cryptocurrency is artificially inflated and then sold off, leading to losses for other investors. Last year, NFL great Tom Brady lost millions in the collapse of cryptocurrency company FTX,

Cryptocurrencies are ALSO vulnerable to hacking, phishing, and other cyber-attacks. Exchanges and wallets can be compromised, leading to the theft of funds. Fake exchanges and accounts overseas are another common scheme. Cyber attackers create fake exchange platforms, attract investors, and demand ransom amounts after investors try to withdraw their funds. A recent scheme in Brazil demanded a daily fee of $50,000 or a one time withdrawal fee of $250,000 when an investor tried to withdraw his initial investment.

If you plan to invest in cryptocurrency, it is important to do the research and consult the appropriate experts before opening an account, particularly if the investment is outside of the United States.

Top 10 Nations with Cryptocurrency Holders – by % of Population

1. United Arab Emirates -30.4%
2. Vietnam – 21.2%
3. United States- 15.6%
4. Iran -13.5%
5. Philippines – 13.4%
6. Brazil- 12%
7. Saudi Arabia – 11.4%
8. Singapore – 11.1%
9. Ukraine- 10.6%
10. Venezuela – 10.3%

Hiding Marital Assets in Cryptocurrency

If you suspect that your spouse is hiding cryptocurrency, here are five (5) things to consider:

1. First and foremost, get a copy of your tax return. If your spouse filed an accurate tax return, he or she would have reported the gains and losses from cryptocurrency on the tax return.
2. Review your spouse’s bank statements. A bank statement will show any purchases or ACH withdrawals from an exchange.
3. Take a look at a recent loan application or financial statement sent to a bank to see if he or she listed a crypto account as an asset.
4. Look in your home office or the family safe for any indication of a paper wallet or hardware wallet. Many times, you can find a user “address” or login information written down on a calendar, notebook, or a piece of paper.
5. Lastly, check to see if there is an application or website on a family computer or cell phone.

If you do happen to find an address for cryptocurrency, the address can be used to identify what cryptocurrency is held. For example, cryptocurrency held on an Ethereum blockchain starts with the letters “Ox.” Using the address, you can search the Ethereum blockchain at https://etherscan.io/, which may show the current balance and all historical transactions. By way of another example, Bitcoin blockchains can be searched on the Bitcoin blockchain at https://www.blockchain.com/explorer.

Cryptocurrency can complicate divorce proceedings due to its unique nature. Handling cryptocurrency in a divorce case requires careful consideration of its unique properties, legal implications, and potential challenges. Transparency, expert advice, and thorough documentation are essential to ensure a fair and equitable division of assets

Finding a divorce lawyer who understands cryptocurrency requires careful research and vetting. Reza Golesorkhi and the lawyers at Joseph, Greenwald & Laake, P.A. are equipped with the educational tools and expertise to handle the unique challenges of locating and dividing digital assets in a divorce.

The transition from summer to fall represents a time of change and for some people, a time of change can be an opportunity to consider a divorce.  If you’re considering a divorce, it’s essential to prepare yourself for what lies ahead.  Preparation and proactiveness are key to mitigating the anxiety of any major life change, including a divorce and in this post, I’ll suggest how you can prepare yourself if considering such a major change.

Why Prepare For Divorce at All?

A divorce is not only emotionally challenging but mentally taxing.  Preparing allows you to:

• Reduce the stress and anxiety of the process
• Ensure a smoother process
• Build a foundation to protect your interests and rights
• Make informed decisions about your future

Logistical Preparation

As you begin to think about a divorce, consider the following:

1. Choosing a divorce attorney:  Representation throughout this difficult process is key and an experienced Maryland family law attorney can help guide you through the process.
2. Evaluate your living situation:  Whether you remain in your marital home or seek alternative living arrangements is a key consideration and one you should contemplate.
3. Evaluate your child-based arrangements:  If you have children, consider your and your spouse’s ability to co-parent and existing child-based arrangements and how they will change after a change in living situation.

Financial Preparation

Getting your finances in order is a critical and necessary step.  Some of the primary steps include:

1. Gather financial documents:  Collect all of your relevant financial documents, including pay stubs for the last year, bank statements for the last two years, investment account statements for the last two years, retirement account statements for the last two years, and the last three income tax returns.
2. Create a budget:  An often overlooked step, and yet possibly the most critical is that you establish a budget setting forth your income, expenses, and debts.  This is essential to helping you and your attorney understand your financial situation and allows you to make informed decisions.
3. Evaluate marital versus non-marital property:  If you have inherited or pre-marital property, begin to gather information showing why the property is non-marital.  This will be critical.

Emotional Preparation

Divorce can be emotionally draining, so:

1. Establish a support network:  Reach out to friends and family who can provide emotional support and guidance.
2. Focus on yourself:  Engage in activities that promote relaxation and stress reduction, such as exercise, meditation, or hobbies.
3. Consider counseling:  Marriage counseling may not be an option, but individual counseling can help you process your emotions and prepare for the transition ahead.  Seeing a therapist is not a vulnerability to your case.

Initiating the Divorce Process

Once you’ve prepared yourself, it’s time to initiate the divorce process:

1. Retain your attorney:  You and your attorney can discuss the best approach for your case.

Conclusion

Preparing for a divorce requires careful consideration and planning.  By taking the time to prepare yourself logistically, financially, and emotionally can set you up for a smoother and less stressful process.  If you’re considering a divorce, reach out to discuss how to best prepare for your potential divorce matter.

In July of 2024, the Occupational Safety and Health Administration (OSHA), a subagency of the U.S. Department of Labor, proposed a worker-safety-excessive-heat rule. While five states have certain rules protecting certain workers from excessive heat, if finalized and enacted, OSHA’s rule would be the first national safety standard in the country’s history that attempts to tackle safety requirements for workers dealing with excessive heat. As it stands, the proposed rule applies to both outdoor workers (such as construction workers) when outdoor temperatures are at or above 90°F and indoor workers (such as kitchen staff) when working indoors at temperatures at or above 80°F.

Under the proposed rule, employers that have employees who fall into these two categories must develop a worksite monitoring plan called a Heat Injury and Illness Prevention Plan (HIIPP). For employers of qualifying outdoor workers, the HIIPP requires them to track local heat index forecasts. And for employers of qualifying indoor workers, the HIIPP requires them to identify work areas that have potential hazardous heat exposure and develop, with input from their workers, a monitoring plan for dangerous heat.

Some additional requirements of the proposed rule include:

• When the heat index is at 80°F or higher

• Providing qualifying workers easy access to “suitably cool,” drinking water sufficient for one quart of water per hour per worker; and

• Providing qualifying outdoor workers breaks in areas that block direct sunlight and are open to outside air that have either:
  • Artificial shade such as a tent or pavilion orNatural shade such as trees or
  • Air-conditioning in an enclosed space

• Providing breaks to qualifying indoor workers in an area such as a break room that has air conditioning or at least “increased air movement” and possibly a dehumidifier.

• When the heat index is at 90°F or higher

• Providing mandatory 15 minute breaks at least every two hours (unpaid meal break qualifies as a mandatory break) in the break areas as stated above, and

• Implementing a system to look for signs and symptoms of heat-related illness.

• When indoor work areas “regularly exceed 120°F[,]” employers must place “legible, visible, and understandable” warning signs at those work areas, which seems to indicate that such signs must be in a language other than English if workers are not fluent in English.

Finally of note, employers with qualifying indoor work areas must follow a recordkeeping requirement of “hav[ing] written or electronic records of those indoor work area measurements and retain those records for 6 months.”

The Biden Administration has publicized the proposed rule as the proper response to “extreme weather” caused by climate change to protect approximately 36 million workers. The proposed rule is expected to be published in the Federal Register soon for comments and to be opposed by numerous industries and associations such as the Chamber of Commerce.

JGL President, Paul Riekhof, announced that Alyse Prawde has been named a Principal of the firm. Alyse received her JD from the University of Maryland School of Law, cum laude and practices in the areas of appellate law, civil litigation and civil rights. Additionally, Bridget Cardinale, has been elevated to Senior Counsel and received her JD from Wake Forest University School of Law. Her practice is focused in civil litigation, civil rights, labor & employment and personal injury.

Chris Castellano was invited to speak on The Divorce Hour (Digital Radio Talk show) hosted by Ilyssa Panitz on Saturday, July 20th. Chris discussed why legal fees can snowball in Post Judgment Matters. 

JGL partner Reza Golesorkhi has been voted for and recognized as the Best Divorce Attorney in the “Best of the City 2024” awards in DC Modern Luxury Magazine. Check it out here.

In Maryland, a protective order is an important legal tool that helps keep people safe from different kinds of abuse and harassment. It’s similar to a restraining order and tells someone to stop certain actions against another person. Whether you’re dealing with threats, harassment, assault, or other abusive behaviors, knowing how to get and use a protective order is essential for your safety.

Who Can Get a Protective Order?

To qualify for a protective order in Maryland, you must have a specific relationship with the person causing harm. This can include being married, divorced, or separated; related by marriage, blood, or adoption; living together in a sexual relationship; parents of a child together; victim of recent (within 6 months) sexual assault; or vulnerable adults. If your relationship doesn’t fit these categories, you might be eligible for a peace order instead, which covers disputes with neighbors, strangers, or non-intimate dating partners.

What Counts as Abuse?

Before a court will give you a protective order, you need to show that the other person has done something abusive. This could be assault, threats of harm, sexual offenses, stalking, false imprisonment, or sharing intimate photos or videos without your permission.

How to Apply for a Protective Order

To start the process, you must fill out a Petition for Protection from Domestic Violence and an Addendum-Description of Respondent form. You can get these forms at the courthouse or online. If revealing your address could put you in danger, you can ask to keep it private or use the Safe-At-Home program for extra protection.

Filing and Electronic Options

Maryland has made it easier to file a protective order. You can submit your forms electronically from approved places like domestic violence prevention programs or hospitals. Courts also hold hearings over video to make sure you can get help quickly, even outside of normal court hours.

What Happens Next?

Once you file, a hearing is set up quickly to review your situation. The court might issue temporary orders right away, like orders to stay away or leave a shared home. Temporary orders usually last about a week. After that, there’s a final hearing to decide if a longer-term protective order is needed.

Long-Term Protection and Changes

If a judge determines that abuse has occurred, they have the authority to issue a protective order valid for up to one year in Maryland. This order may include provisions such as instructing the abuser to cease abusive behavior and threats, stay away from you, your home, workplace, and your children’s schools, grant temporary custody of children and pets to you, provide financial support, surrender firearms, mandate participation in counseling programs, and impose any other measures necessary for your protection. Both you and the abuser will receive copies of the Protective Order at the hearing, ensuring you have legal documentation of the court’s directives to keep with you at all times.

Responding to a Protective Order

If you get served with a protective order, read it carefully and prepare for the hearing. This isn’t a criminal charge, but it’s serious. It’s a good idea to talk to a lawyer to understand what to do next.

Where to Get Help?

If you’re dealing with domestic violence or need more info about protective orders, there are places that can help. Organizations like the House of Ruth and the National Domestic Violence Hotline offer support and answers to your questions. You can also speak with an attorney in our office.

Following the Rules and Making Changes

Breaking a protective order can lead to criminal charges, like going to jail or paying fines. You can also ask the court to enforce the order if it’s broken. If you need changes to an order, you can ask the court to make them.

In Conclusion

Understanding how to get and use a protective order in Maryland means knowing your rights, the legal steps, and where to find help. By taking action, you can get the protection you need and stay safe in tough times. For more details or specific questions, please reach out to the attorneys at our firm, we are happy to help.

Protective orders are important tools to stop domestic violence and help victims find safety and peace. Knowing these steps lets you take charge and make a safer future for yourself.

In an article published on June 18, 2024 by Medical Economics, Brian Markovitz explains what the recent FTC rule banning noncompete agreements means for the future of the healthcare industry’s economy. The article details what the ban will do for competition and business growth, as well as the expected decrease in healthcare costs over the next decade. Markovitz also provides context for the ban, including the overwhelming support for the rule from healthcare employees and medical business entities.

Read the full article, “Why medical economics may change significantly if FTC noncompete ban is upheld,” in Medical Economics.

In this episode of JGL LAW FOR YOU, Senior Counsel Michal Shinnar and David Bulitt talk about the Americans with Disabilities Act. What it is, Who’s protected, What’s Covered, How it works, and more. 

The Federal Trade Commission (FTC) recently announced a rule that bans non-compete agreements. Non-compete agreements contractually restrict workers from joining or starting a competing business after leaving their employment. These agreements commonly designate how long and where these controls apply. These agreements are used by employers across all sectors of the workforce, the FTC estimates that 30 million workers in the United States are subject to one.

It is anticipated the ban will promote competition, leading to approximately 8,500 new businesses created annually and increasing individual employee earnings by an average of $524 per year.

There are numerous legal concerns with the FTC’s rule. The Supreme Court previously held the FTC does not have jurisdiction over non-profit entities unless they provide substantial economic benefit to their for-profit members. Yet, the FTC said non-profit or tax-exempt status is not dispositive of whether the entity is subject to the ban, which makes application of the ban confusing.

The FTC already faces legal challenges arguing that only Congress can make a rule with such a significant economic impact. The rule as it currently stands will nullify thousands of contracts and may be unconstitutional for exceeding the FTC’s statutorily permitted powers. Pending Supreme Court cases are considering restraining the implicit authority of federal agencies like the FTC, rendering predictions for the outcome of the rule difficult. Ultimately, the Court may strike down the FTC’s rule as an unconstitutional exercise of power. The rule becomes effective around August 20^th, 2024, but is expected to be delayed by legal battles.

The article was written by JGL principal Brian Markovitz and Deborah Jaffe, who is a law clerk at the firm.

In an article published on June 25, 2024 by Physician’s Weekly, Brian Markovitz and Deborah Jaffe explain what the recent FTC ban on noncompete agreements means for healthcare businesses. The article details what the ban will do for competition and business growth, as well as the expected decrease in healthcare costs over the next 10 years. Markovitz and Jaffe also provide context for the ban, including how many employees felt trapped and burned out in their current employment situation.

The article was written by JGL principal Brian Markovitz and Deborah Jaffe, who is a law clerk at firm.

Read the full article, “How Will the FTC Ban on Noncompete Agreements Affect the Healthcare Sector?” in Physician’s Weekly.

In this episode of JGL LAW FOR YOU, attorneys Renee Blocker, Lindsay Parvis, and David Bulitt discuss the ways that Personal Injury and Family Law collide with interesting examples.