Spouses are increasingly employing sophisticated tactics to commit financial infidelity. Some exploit their partner’s unfamiliarity with cryptocurrency to retain more assets during a divorce. In many cases, one spouse remains unaware of the other’s digital transactions due to their lack of interest or involvement in the world of crypto.
However, even digital assets such as Bitcoins are subject to the same rules as other assets. If a spouse was acquiring, holding or trading bitcoins during the marriage, those assets may fall under marital property and, therefore, be eligible for property division.
Here is a closer look into crypto and digital assets and how to uncover them during divorce.
How to start looking
Without understanding how cryptocurrencies work, knowing where to start looking can be difficult. However, there are a few common signs that a spouse is hiding digital wealth.
- Disclosing assets that do not match their actual earnings
- Hiding a 256-bit long number typical of a private key used for accessing a crypto wallet
- Keeping crypto-related applications on digital devices
- Declaring virtual currencies on tax returns
- Making large purchases online that do not appear on bank records
- Being unusually secretive regarding financial matters
Attempting to hide assets during a divorce is against the law in Denver. However, crypto’s anonymity and digital nature may make it tempting for a spouse to conceal how much they truly have.
Tracing crypto and other digital assets
Cryptocurrency may appear inaccessible, but there are ways to trace digital transactions. Each crypto transaction is recorded on the blockchain, a shared public ledger that stores data across a network. It may offer clues leading to a spouse’s hidden digital assets.
Nonetheless, unraveling this information can be complex without help. Those who suspect hidden crypto assets may consider enlisting the help of a forensic investigator or asking their attorney to provide such support. Enlisting an attorney can have several strategic advances. Beyond providing guidance in filing and negotiations, they can assist in subpoenaing tax returns, computers, and other materials that may be instrumental in revealing assets.
There is no need to face this virtual game of hide and seek alone. Securing legal support may help uncover hidden assets and ensure a fair settlement.