Should you worry about digital wallets in divorce?

On Behalf of | Jul 29, 2022 | High-asset Divorce

Going through divorce is difficult for everyone, and some parts of it prove a bigger hurdle or hindrance than others.

Asset division is among those potential hurdles. This is the part of divorce where a spouse may show an ugly side by attempting to hide assets.

What is asset hiding?

CNBC discusses the use of cryptocurrency in divorce situations. These days, more and more people attempt to use digital currency as a means of hiding assets during the asset division stage of a divorce.

First off: what is asset hiding? In divorce, both parties must essentially divide their assets equitably between the two of them. Many people feel bitter or resentful of their soon-to-be ex-spouse, however, and do not want to give them any assets.

Thus, they may try to hide assets in various ways, including lying about sources of income or buying expensive items with the intent of selling them or returning them after the completion of the divorce.

Digital assets in asset hiding

Digital assets serve as just another avenue to do this same thing. People will often buy bitcoin or other forms of cryptocurrency and keep it in their digital wallets. Then, the people attempting to find any additional assets are more likely to miss it if they are not well-versed in cryptocurrency already.

However, the good news is that more and more people these days understand how cryptocurrency work. Forensic financial analysts know to stay on the lookout for digital currency trails, and it is easier than ever to see whether or not someone is trying to hide assets through these means. Thus, it is easier to take these individuals to justice over their misdeeds.