Should you worry about your spouse’s digital wallet in divorce?

On Behalf of | Apr 30, 2022 | Uncategorized

Going through divorce is difficult for anyone. Some parts of divorce pose a bigger hurdle than others, too. For example, asset division often proves one of the trickiest parts.

In particular, you may end up facing unique hurdles in the form of digital assets. But how much should you actually worry about them?

The problem of property division

CNBC discusses the issue of spouses using cryptocurrency to hide assets during divorce. First of all, what does it mean to hide assets?

In essence, divorce law demands that most property in a marriage get divided equitably or equally at the end of a marriage. In short, you may get the house while your spouse gets the car, joint accounts can get divided, and even debts may end up shared.

Of course, many spouses do not want to go through this process, especially if they harbor negative emotion toward their significant other. They may think their spouse does not deserve anything of theirs, or they may even fear for their own financial stability in the future.

What is asset hiding?

Thus, a spouse may try to hide assets instead of paying the amount they owe. This involves a person pretending they have fewer assets or income than they actually do.

A common and popular way of hiding assets is by turning the money into something else temporarily. For example, someone may buy an expensive car with the full intention of returning it and getting that money back after the finalization of a divorce.

Some people use cryptocurrency in the same way. They invest in or buy large quantities of bitcoin with the intent of trading or selling it after divorce, thus getting all of that money back.