Ideas on how to settle potential divorce amounts.

I am back on here after a long hiatus and a smorgasbord of things happening in my life. I would like some advice. This is based on the response to the reply I made to the following post a while back:

https://support.youneedabudget.com/t/g9hqq6w/divorced-moving-on-towards-financial-independence

It is the last story on there, for context. 

My finances for how are solid:

1. Budgeted 3 months into the future.

2. Savings account has 5000 USD in emergency savings.

3. Roth IRA has around 7500 USD.

4. Retirement account ( 403(b) ) has around 19500 USD and growing.

5. 0 USD in debt, credit card, loans or otherwise. Everything has been paid off.  No mortgage, no car loans, no nothing.

6. Made some smart crypto investments of around 6-7K USD at the right time. That portfolio is currently at 50K USD and growing.

7. Investments back home are growing and are being handled by someone trustworthy. 

8. Send around 1000 USD back home for my dad almost every month that gets invested and he gets paid the generating interest, with the principal untouched. 

Now coming to the problem. The judge mentioned during our last pre-trial conference that he is looking at splitting my ex's living costs half and half (which is entirely fair) and I am responsible for that. He said we both are qualified enough and have well-paying jobs, so he is not touching the retirement accounts. Unfortunately for me, he says we should split the crypto accounts since they are assets (which technically they are marital assets, also legally true). The problem I have with this is that my ex's contribution to my life, my investments etc. was literally 0 USD. She was working when I was a student and I put myself through school on my merit and scholarships. She did not pay a dime towards the house or any of it. She was living rent-free, responsibility-free back home with her parents, which basically left her to enjoy whatever the hell she made every month (which I am completely okay with, as long as it is applicable to both sides). I never asked her for any help whatsoever, never took a dime from her. 

Also, most of my crypto investments have been made AFTER she claimed the marriage had broken down, but the judge still wants to split this half way. The problem for me is, at today's rates, I owe 12K USD (for my share of her living costs) plus 25K USD of the crypto value. 

I think I would be a fool to let me crypto investments go at this point, so the only thing to do would be to potentially pay her the dollar value of that amount on the day of settlement. My emergency savings and some other monies I have can cover the 12K USD, but I am wondering how best to pay off the 25K USD equivalent that may be due. And God save me if crypto decides to appreciate in the next few months. 

One of my current options is a SoFi personal loan at 4.99% for 2 years, which is around 1000 USD a month, which is definitely affordable for me, but I am wondering if there are any other options or ideas that people may have from their experiences. Any inputs are most welcome.   

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  • I'm sorry about your boating accident where your crypto fell overboard.

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      • Primaniac
      • furious_falcon
      • 1 mth ago
      • Reported - view

      SgtBatten ROFL! I wish I could seriously use that. It is a gem of a method. :)

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  • Bump for visibility! 😊

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  • So, like a house, you would like to keep the crypto.  Is it possible to negotiate it like one would a house payout during divorce?  Could you request that you pay her half of the value over a short period of time, say 12 months, 18 months or 24 months?  It is worth exploring.  If you sell some or all of your crypto, you most likely will have to pay her the balance at that time, lost or gain.  Other than that, the personal loan looks to be the only option.

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      • Primaniac
      • furious_falcon
      • 1 mth ago
      • Reported - view

      Seabass Thank you for chiming in. I would not like to sell the crypto, most definitely, because I would lose a crap ton of appreciation in that investment, which is possibly going to take a long time to recover, maybe not at all. I am sure crypto is going to nosedive in the near future, as with most investments, but I believe there is a new baseline that has been established for the currency that I hold and it in all probability will not dip below that going forward. The delta between my cost basis and that new baseline itself is immense, so I would definitely not want to let it go. :) But your point makes sense. A payout could be structured or discussed. I will talk to my lawyer about this. Thanks a lot. 

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  • Would you take a $25k loan at 4.99 for 2 years for to buy crypto at today's prices?  Because by taking a loan to avoid selling your crypto, that's what you're doing.  It's fine, you can decide that's the right thing for you, but just be honest with yourself.

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      • Primaniac
      • furious_falcon
      • 1 mth ago
      • Reported - view

      PhysicsGal Very interesting. I never thought of it like that. It would make sense now to look at it that way. To be very frank and honest, from an investment perspective, I would not take that loan to buy crypto at today’s prices. I would much rather DCA my way in slowly (which in a weird sort of way, is Seabass ‘s suggestion, if you equate it to that). The advantage of doing this is she will be out of my life and I will be done with her (hopefully, if both cases are disposed off properly, here and back home) and I will be free to invest and grow my money. The longer these cases drag on, the more I am not able to invest what I have, since it will count as marital assets and there are a lot of other associated problems. But your point gives me more food for thought. Thanks for the perspective. :) 

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