How does cryptocurrency relate to divorce?

On Behalf of | Mar 25, 2022 | Family Law |

Divorce is a difficult time for both partners, and some parts of it prove a bigger struggle or hurdle than others. For example, many people will find the division of assets difficult.

Some people will find it unbearable to the point that they will try to avoid it at all costs, however. This is where you might want to keep an eye on digital wallets and the behaviors of your spouse.

The struggles of asset division

The CNBC discusses how cryptocurrency relates to divorce. In specific, it relates to people who may want to try hiding assets during the process of asset division in a divorce.

Generally speaking, a court will decide on an equal or equitable division of assets in a divorce if the couple cannot reach an agreement on their own. You often do not have control over how the assets get divided or who gets what, with the exception of sentimental items or items owned before the marriage.

This is often difficult for some spouses to accept. It can lead to them wanting to cheat you out of the assets rightfully owed, usually by hiding money away so it cannot get swept into the divorce proceedings.

Hiding assets digitally

Digital currency and wallets once offered a great way of doing that. Until this year, not even the IRS paid much attention to cryptocurrency and other digital assets. This made it a perfect place for people up to illicit affairs to do their business.

But with the rise of the mainstream’s awareness of it came more regulation. These days, most people have heard of cryptocurrency or digital wallets. Divorce attorneys and forensic financial analysts also know to keep an eye out for assets hidden digitally, which is a major relief to many going through divorce.

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