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Can your spouse hide money digitally?

On Behalf of | Aug 3, 2022 | Property Division

Divorce is a difficult situation for many couples, with the division of assets acting as a primary source of stress for a vast majority of them.

Some spouses may feel that their soon-to-be ex does not deserve any of their assets. As such, they may try to make it seem like they have fewer sources of income or less money than they really do. This is asset hiding, and people do it digitally these days.

Hiding assets via cryptocurrency

CNBC discusses the use of cryptocurrency in divorce. Many people use digital wallets and cryptocurrency as a way to hide assets in a divorce.

Generally speaking, a person will hide assets via cryptocurrency by purchasing things like bitcoin, which have value on the digital plane. They will either transfer this back to “real world” cash after the divorce, or they will simply allow the digital currency to sit and gain value over time. Some even attempt to use this money to invest and make even more digital currency, increasing their wealth further while avoiding giving any of it to their spouse.

The die-off of this trend

However, in recent days, this trend has begun to die off. This is due to the fact that cryptocurrency has entered into the conscious awareness of the mainstream, meaning it is harder than ever to get away with hiding things in a digital wallet.

Of course, digital asset hiding is the same as any other type of asset hiding, too. This means that people found guilty will face the same penalties as anyone else, thus restoring the rightful amount of assets due to the spouse who suffered through this attempt.

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