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Is your soon-to-be ex-spouse hiding cryptocurrency from you?

On Behalf of | Apr 9, 2020 | High Asset Divorce

When it is time to divide up assets for a divorce, people sometimes go through extreme lengths to hide assets from their partners. Others look for ways to waste them. A new problem that is emerging stems from people investing in cryptocurrency. Could your divorce suffer from this new complication?

Bankrate points out that the problems cryptocurrency investments create do not always stem from buying for malicious reasons. An honest investment in digital currency can also serve to complicate things.

How common is it?

Bankrate reports that 5% of Americans held cryptocurrency back in 2018. Since then, more people have begun to invest in digital assets. In fact, at the time, a survey found that 21% of respondents wanted to add cryptocurrency to their investment portfolios.

Bankrate states that all around the world, courts are seeing divorces where cryptocurrency makes its way into high-asset value disputes. Because of this, some professionals now ask clients to include cryptocurrency when estimating their net worth.

Does it work?

Can your husband or wife successfully use bitcoins to hide their assets? Unfortunately, yes. It is especially easy for them to do if you have no idea that they even own cryptocurrency. They can also work with skilled individuals to hide their tracks so that their ownership of digital currency remains a secret.

To make matters worse, most accountants are not experienced in handling or tracking cryptocurrency and the transactions related to them. As a result, even when cryptocurrency gets discovered, it can take some time to decide how to split it.

Investing in cryptocurrency is as risky as any other type of investment. Just as the stock market can plummet almost overnight, the same can occur with cryptocurrency. That said, it is also possible for the investment to appreciate in value.

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