“Divorce and Cryptocurrency: How Hidden Assets are Testing the Limits of the Law and Relationships”

2023-05-21 14:07:28

Recently, we have heard an increasing number of cases where one of the parties involved in a divorce case suddenly decides to quietly invest in bitcoins. More recently, a New York wife exposed her husband, who bought 12 bitcoins behind his partner’s back instead of sharing.

The woman became suspicious because her husband, who earned about 3 million dollars a year, disclosed quite a few assets in the divorce proceedings. The lady was so unsettled by this that she involved a legal book expert in their divorce. With his help, it turned out that the man had bought 12 bitcoins not too long ago, the value of which at the time was around $500,000.

“I knew about bitcoin and similar tools. I just didn’t know much about them” – said the woman, who asked to remain anonymous for fear of contempt.

“It didn’t even cross my mind because he never talked about it and we didn’t make investments together… It was definitely a shock” – he continued.

They still don’t quite know where to put cryptocurrencies in the courts

While hiding wealth is nothing new for those who want to avoid court judgments and sharing their wealth, the rise of cryptocurrencies created a new headache for divorce lawyers.

“I think the law is still trying to catch up with this new form of money, even though it’s been around for a long time” Kim Nutter, a Florida family law attorney, told CNBC.

However, as crypto-related financial tricks have evolved, so have the tools of those tasked with tracking down marital assets. Some forensic accountants now expressly they specialize in tracking cryptocurrencies. Sophisticated analysis of blockchain transactions is used to search for hidden assets.

But another point for sneaky husbands – the smarter ones have also developed new tactics, including the use of anonymized digital currencies like Monero, which are known to be almost impossible to trace (especially for a spouse who doesn’t really know cryptocurrencies).

And a very estranged marriage may also hide a wallet at least as cold, in which the parties who do not want to share their valuable assets are locked away.

Oops. Divorcees aren’t the only ones who have something to hide.

Based on research, the so-called “financial infidelity” is not limited to divorcing couples. According to a February survey by financial information site Bankrate 39 percent of Americans have committed some form of “financial infidelity” with their romantic partner.

Among those who are married or in a cohabiting relationship, 12 percent have a secret credit card, 11 percent accumulate large expenses behind their partner’s back, 10 percent have hidden debt, and 9 percent have a secret savings account.

A study one of his interesting findings is that it seems the younger generations they collect the biggest financial secrets.

Sixty-three percent of Gen A’s have kept money-related details from their current partner, along with 54 percent of Millennials—both numbers far higher than Generation X or Baby Boomers.

“It used to be that couples were expected to be completely connected in their financial lives, but I see that changing with younger clients” Amanda Clayman, a financial therapist in Los Angeles, told Reuters after the survey.

Published on the BitcoinBázis page.

#Avoiding #asset #division #bitcoin #Divorcees #creative

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