LEGAL ALLIES, TRUSTED PARTNERS

Do you know what is in your spouse’s digital wallet?

On Behalf of | Aug 11, 2022 | Divorce

When going through a divorce, one of the most potentially difficult parts is the division of your assets. This can cause enormous stress for you and your partner alike.

Unfortunately, the stress of the situation can and does often drive people to try illegal things such as asset hiding. If your spouse has a digital wallet, it is one thing to keep an eye on regarding potential hidden assets.

Establishment of digital wallets

CNBC discusses the use of cryptocurrency in divorce. Until recent years, not many people even knew about digital assets or cryptocurrency. Even forensic financial analysts did not start really delving into crypto until a few years before it broke onto the mainstream.

This gave some people plenty of time to establish digital wallets, all without their spouses even knowing about them. Essentially, asset hiding via digital wallets worked similarly to asset hiding via the purchase of expensive, big ticket items.

How digital asset hiding works

People would buy bitcoin or other types of cryptocurrency with their money, which would then remain in a digital wallet. They could either cash the coin back out after the finalization of the divorce, or they could allow it to remain in the wallet, accumulating interest. They could even use it in trades and stock purchases, potentially making more money along the way.

Hiding assets via digital means carry the same repercussion as hiding assets in any other way, though. People who attempt to do this can get caught and sentenced to the same reparations that those who hide assets in other ways do. Thus, suspicions of a person hiding assets digitally should get looked into.