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Can your spouse use cryptocurrency to hide assets?

On Behalf of | Dec 20, 2022 | divorce

Do you suspect that your spouse may be hiding assets? Maybe you noticed some suspicious activities while you were still happily married, or you’re worried they may hide assets after filing for divorce. Regardless of your situation, it’s important to note that your spouse can use different methods to hide money from you.

While it’s illegal to give false information to the court when giving full disclosure of assets, your spouse may still try to hide money from you. One way they can do that is by investing in crypto.

Why your spouse may use cryptocurrency to hide assets

Cryptocurrencies like bitcoin are encrypted virtual or digital currencies, which are nearly impossible to counterfeit. They also have a decentralized structure and may exist independently of authorities. This makes it difficult to trace.

Investing in cryptocurrency isn’t as simple as writing a check or depositing cash into a bank account. Instead, it’s anonymous and an effective way for most people to hide their assets. Furthermore, there’s no centralized authority to which a court order can be addressed. Therefore, even if a spouse hides crypto assets, a court order cannot help seize them.

Signs your spouse is hiding crypto assets during divorce

As with any divorce proceeding, it’s crucial that you look out for signs of concealment. Here are a few signs that your spouse may be using cryptocurrency to hide money from you:

Transaction records with a cryptocurrency exchange: Usually, cryptocurrency is purchased with liquid cash. This means that your spouse may have moved money from their bank account to a cryptocurrency exchange.

Large Amazon purchases: If your spouse is trying to hide assets from you through cryptocurrency, they will most likely be careful not to leave any traces of their activity in the financial statements. To do this, they may avoid using a cryptocurrency exchange. Instead, they’ll purchase cryptocurrencies from another holder through Amazon.

Hiding assets during a divorce is prohibited. Therefore, if you suspect your spouse is doing it, seek legal assistance to devise a game plan for dealing with it.