When divorce is on the horizon, hiding assets is a common practice for spouses who want to protect their financial interests.
While it may not be anything new, recent technological innovations have given deceptive spouses a new way to go about the process. Instead of just transferring funds to close friends or relatives, deferring commissions, refunds, or bonuses, or moving investments into dummy corporations, many choose to stash their money in cryptocurrencies.
Here’s everything you need to know if you’re worried about your spouse hiding cryptocurrencies in property division proceedings during an Arizona divorce case.
What are Cryptocurrencies?
Cryptocurrencies like Bitcoin, Etherium, Cardono, Solana, Polkadot, Ripple, Dogecoin, Litecoin and others, are anonymous and mostly unregulated forms of digital cash. One reason cryptocurrencies have become so popular as a method of payment and as an alternative investment vehicle is that they’re not tied to a centralized regulating authority, such as central banks.
Transactions and transfers can also be made near-instantaneously without getting bogged down by regulations, fees, or third-party interference.
Why are Cryptocurrencies Used to Hide Wealth?
Cryptocurrency users typically have a wallet address to identify them, instead of using their real names. This anonymity feature makes it tough, but not impossible, to link transactions to specific people.
- Cryptocurrencies can’t be requisitioned through traditional methods, since there’s no central authority where a court order can be sent to.
- Cryptocurrencies are very liquid, even for large sums of money. Users can quickly move or transfer funds in a matter of seconds.
- Cryptocurrencies can be too sophisticated and technical, especially for unwitting spouses who do not know this technology.
Cryptocurrencies and Divorce
The anonymous nature of cryptocurrencies makes them the perfect way for dishonest spouses to get their assets out of the court’s jurisdiction and leave them out of property division discussions.
Remember, cryptocurrencies may be considered marital assets that are subject to distribution. They may also be considered as income for alimony or child support proceedings.
Hiding cryptocurrencies isn’t always the best choice. Spouses who are caught hiding cryptocurrencies can face the following consequences:
- They’ll most likely receive a smaller portion of the marital assets.
- The judge may also doubt any testimony that they make in court, given their propensity for being dishonest.
- They may be required to pay additional penalties.
- They may also face perjury or other criminal charges.
It’s more beneficial for both parties to be transparent and honest about their finances as this will help speed up the divorce.
Hire an Arizona Divorce Attorney
If you’re worried that your soon-to-be ex-spouse is hiding digital assets from the court, find a divorce lawyer that can help you as soon as possible. They can offer advice and guidance, and help you work towards the best possible outcome for your case.
At Goldman Law, we can work with experts who can find evidence of your spouse’s cryptocurrency transactions. We’ll also take the necessary steps to make sure that you’ll get what you’re entitled to.
Contact us at (602) 698-5520 to schedule a consultation.