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Should you worry about crypto in divorce?

On Behalf of | Aug 17, 2022 | Property Division |

When going through the divorce process, you should always keep an eye on your spouse’s assets. After all, asset division is one of the trickiest and most difficult parts of a divorce for many reasons.

Additionally, it is also a part of the divorce where a spouse may try anything in their power to keep you from getting the portion of assets you rightfully deserve.

What is asset hiding?

CNBC discusses the use of digital wallets in asset hiding schemes. First of all, what is asset hiding in the first place? This generally involves one spouse attempting to hide or obscure money they already have or money they make in an attempt to make it seem like they have less to give. Thus, when the court divides assets, you get less than you otherwise would have.

People have tried everything in the book since the advent of divorces to try hiding assets. In the digital age, it makes sense that people would also try digital methods of hiding their assets. This includes the use of digital wallets and cryptocurrency like Bitcoin.

Use of crypto and digital wallets

In essence, a person can transfer their money into Bitcoin or other forms of cryptocurrency which only exist digitally. Unless a forensic financial analyst knows how to navigate this, the money essentially vanishes from the eyes of most people. They can then withdraw this currency after the divorce, or continue to invest to make even more profit.

However, any form of asset hiding is illegal, including these new digital forms. Thus, if you suspect your spouse of hiding assets in this way, you should consider looking into the matter further.

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