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Why might cryptocurrency be a concern when you divorce?

On Behalf of | Dec 22, 2023 | Divorce

Cryptocurrency has had considerable uptake despite the naysayers. While many who dipped into it have now moved their money out to more traditional assets, it still holds considerable appeal for those looking to hide assets.

Among them are divorcing spouses. The appeal of cryptocurrency is the security it offers. It can be extremely difficult for others to track down what someone holds, and even if they do, they may still never be able to access it without the necessary passcodes. People who don’t want to share everything they should with their spouses may use it to cheat them out of money that they should get a share of in a divorce.

One private investigator and computer forensic expert estimates that a quarter of the cases he works on now include at least some hidden cryptocurrency.

What if you can track it down?

With appropriate help, you may be able to unearth cryptocurrency your spouse has purchased, although the ability to trade these extremely quickly and almost anonymously can certainly make that difficult. If you do, you need to present your findings to a court. 

The judge could order your spouse to disclose the full value of the asset (something they were meant to do in the first place), but there is no guarantee they will comply. If they don’t, the judge might just use the evidence you compiled to estimate your rightful share and factor it into the overall property division. Or they might award you much more to punish your spouse for their dishonesty. Learning more can help you protect your rights if you suspect your spouse of dishonesty in your divorce.