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Is your spouse hiding assets using cryptocurrency?

On Behalf of | Nov 8, 2017 | Divorce

increasingly, people transfer money electronically and through all sorts of methods that didn’t exist just a few decades ago. That means it can be challenging to ensure that you have an accurate picture of what you and your spouse are entitled to split and what your spouse can afford to pay in spousal and child support.

Cryptocurrency is a relatively new type of asset. One of the most famous cryptocurrencies is Bitcoin. It provides a way to transfer money directly without it going through a bank or government entity.

Users are assigned a wallet address, which is used to identify them rather than their name. This can make it difficult — but not impossible — to track users’ transactions and the amount of money they have in their “wallet.” Its founder described Bicoin as a “Peer-to-Peer Electronic Cash System.” Transactions are done via a Bitcoin exchange.

Other types of cryptocurrency, such as Zcash and Monero, can be even more difficult to find. That’s why it may be worthwhile to hire a forensic accountant if you believe that your spouse could be hiding assets in any form.

Of course, hiding assets from a spouse in a divorce can have legal consequences. Judges don’t look kindly on it. People caught hiding assets risk paying out more to their spouse than they would have if they had made a full and honest disclosure in the first place.

Your Arizona family law attorney can offer advice on whether bringing a forensic accountant onto your team is a wise and cost-effective move given your individual circumstances.

Source: Huffington Post, “Hiding Assets with Bitcoin in Divorce,” David Centeno, accessed Nov. 08, 2017