Hidden assets are always a concern during divorce, but thanks to the rise of cryptocurrency, it’s easier for spouses to conceal wealth from the other. According to Finbold, divorce attorneys—especially those located in technology hubs—are dealing with cases where one spouse invests substantial marital assets in cryptocurrency without the other spouse knowing.
Cryptocurrency is a decentralized form of currency. There are no governing authorities or regulations, unlike traditional banks and investments. That makes it harder to track down where someone’s crypto holdings may be located: attorneys can’t just subpoena individuals or entities to get information about their financial holdings.
Crypto’s unregulated nature makes it an interesting investment for some people, but the lack of rules and authorities has led to its involvement in crime. Now divorce attorneys are seeing cryptocurrency structures used to conceal assets from the other spouse.
There are many ways someone could hide cryptocurrencies: “Some tactics involved include dispersing crypto across various coins on different blockchains and complicating tracing money trails. Interestingly, due to the ability to trace Bitcoin (BTC) in some cases, spouses opt for privacy-centered digital assets such as Monero (XMR).” In one case, Finbold reports, a woman discovered her ex-husband’s undisclosed “digital wallet,” which held about $500,000 in Bitcoin.
This can present significant challenges for divorce litigation. Since this technology is relatively new, attorneys often need to hire cryptocurrency tracing experts to locate concealed assets.
If you’re divorcing and believe that your spouse may have hidden crypto assets, it’s important to work with a great divorce lawyer. The experienced divorce lawyers at Appelhof, Pfeifer & Hart, P.A. in St. Paul, MN can help—call today to get started.
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