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How might cryptocurrency be a problem in your divorce?

On Behalf of | Aug 28, 2023 | Divorce

One big issue that can occur in a divorce is if one spouse tries to hide assets from the other. They will take away an unfair share of the couple’s joint property if they succeed.

This is not a new problem. People have likely been finding ways to hide assets since divorce first became an option. Yet, as the ways to hold property change, so do the ways to hide it. 

Cryptocurrency is relatively new on the scene, and it can be a very effective way to hide assets, in part because of its newness. Many people still have no idea how it works, so it’s easier to trick them than with assets held in a more traditional way, such as in a bank account.

Cryptocurrency is designed to be secretive

One of the major reasons people turn to cryptocurrency to invest is its lack of transparency and high level of security. It is very hard for someone else to discover that a person holds cryptocurrency. And, if they do discover it, it is incredibly difficult, or even impossible for them to get hold of it.

Clearly that can create a problem in a divorce if you suspect your spouse might be hiding assets in virtual currency. Divorcing spouses are obligated to disclose all the assets they hold.

If you believe your spouse has hidden cryptocurrency you may need to learn more about your legal options. While a court might not be able to get its hands on the currency itself, it may award you a greater share of other assets if you can prove that your spouse has indeed been dishonest in their asset disclosure.