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Can Cryptocurrency Be Used to Hide Assets During Divorce?

The Micklin Law Group- Can Cryptocurrency Be Used to Hide Assets During Divorce?

Believe it or not, many spouses look into how to hide assets in a divorce. During high-asset divorce in New Jersey, the spouse may be worried that they will lose too many of the assets they’ve worked so hard to accumulate, or they may be concerned about how they will survive financially after the divorce. It can be challenging to face the financial realities of divorce, but the law doesn’t allow divorcing people to hide assets to try to make things easier. 

Cryptocurrency is a relatively new currency and investment option, and some spouses aren’t even aware that their partner has invested in currency like Bitcoin. Is it easier for a sneaky spouse to hide assets using bitcurrency? It’s certainly possible. 

What Is Cryptocurrency?

Many people aren’t familiar with exactly how cryptocurrency works, which means it is very easy for one spouse to put money into crypto without the other knowing. Purchasing cryptocurrency is essentially purchasing intangible digital assets. Cryptocurrencies like bitcoin have a value that fluctuates based on market conditions, so many investors put their money into bitcoin as a long-term investment instead of just a currency exchange. If your spouse has a store of cryptocurrency in an account you don’t know about, they may attempt to keep that hidden from you and the divorce attorneys so they can retain that asset once the divorce is finalized.

How to Tell if Your Spouse May Be Hiding Assets

If you are at the beginning stages of divorce, it’s important to be aware of all your marital assets so they can be evenly divided. If you suspect your spouse is hiding assets in the form of cryptocurrency, there are a couple ways to get to the bottom of things. First, pay attention to any mail that comes to your home addressed only to your spouse. Most business correspondence will have a return address with the name of the company. If it is a financial or investing company you have never heard of, you may wish to investigate further. You can also take a look at bookmarks on your computer if your spouse has bookmarked any online accounts that relate to cryptocurrency. This is a good sign that they may have hidden assets. It’s important to be careful when investigating potentially hidden assets so you don’t violate any privacy laws. If you have questions about the acceptable ways to uncover hidden assets, speak to your men’s NJ divorce lawyers.

What to Do If You Uncover Hidden Cryptocurrency Assets

If you have discovered that your spouse does indeed have cryptocurrency accounts they were trying to hide from you, let your New Jersey high asset divorce attorneys know right away. You will need to request financial statements that detail the assets so they can be considered as you divide your marital property. These accounts may be treated similarly to investment and retirement accounts: it may be best for your spouse to cash them out and split up the assets. But if your spouse would prefer to keep their cryptocurrency assets, that can also be accounted for in the divorce agreement to ensure you receive the equivalent value in other assets.

If your spouse has started hiding assets in anticipation of your divorce, The Micklin Law Group’s high net worth divorce lawyers in New Jersey are here to help. Call our office at 973-562-0100 for assistance.

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