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Are divorcing individuals hiding assets with cryptocurrency?

On Behalf of | Nov 29, 2021 | Divorce

When some individuals divorce, they feel a definite financial pinch and may try to hide assets from their ex-spouse, but how difficult is it to use cryptocurrency to conceal it? CNBC reports that more than 20 million people in the United States currently own cryptocurrency, and as the number of people who buy this currency rises, do the chances that more may try to use it in this manner.

Individuals divorcing those who own cryptocurrency and believe their ex-spouses use it to hide assets may want to know which signs to watch for and how to uncover this money during the divorce proceedings.

Signs of hidden assets

It is not always easy for divorcing individuals to uncover cryptocurrency assets, as it is not as tangible as cash stored in a bank account or investment portfolio. The digital nature of cryptocurrency allows people to make investments and turn traditional cash into something more fluid. Those who suspect their ex-spouse of doing so may want to watch for a few signs, such as:

  • An increase in spending
  • A sudden change in spending habits
  • The purchase of a new car or other expensive items

Those who suspect their exes own cryptocurrency may want to speak to their attorney about their concerns, as the court will likely become involved in attempts to uncover these assets.

Tracking and finding cryptocurrency

While digital currency is typically easier to conceal, it is not impervious to detection. A judge can issue a court order and demand the owner turn over his or her cryptocurrency records and uncover hidden assets.

Some types of cryptocurrency are not easily uncovered, although earlier forms are typically simpler to track. Emails, bank statements and tax forms may reveal assets hidden within cryptocurrency accounts.