I recently got divorced and my ex and I have a settlement that includes cryptocurrency. What is the best way to categorize transactions sent to her wallet to satisfy a settlement obligation?
By default, these transactions show up as “sends” - but a transaction in a divorce is not a taxable event.
If I change this to transfer into “other transactions”, the coins remain in my portfolio, which isn’t ideal either.
I could label it as “lost / stolen” which certainly feels more accurate, but I’m not sure how CT records these events in reported tax documents.
Any advice would be appreciated.