The Bitcoin battle is a relatively new setting in the divorce war. Cryptocurrency can be considered an asset and divided between spouses in a divorce. The first step is to have an expert value of the existing amount. Just like any other currency, it can convert into other currencies, like dollars.
Many have believed cryptocurrency to be an effective way to conceal assets during divorce. They were wrong. Someone who has the necessary tools and knowledge can identify the owner of a wallet.
A Few Words About Cryptocurrency
This is a kind of digital currency that allows for highly secure transactions. It can be used to purchase services and goods. However, many people use it for profit in trades. Since these are unregulated currencies, prices are sometimes increased exponentially by speculators. By far, the most popular cryptocurrency is Bitcoin. But there are other currencies on the market as well, like Zcash or Litecoin.
How to Identify Cryptocurrency in a Divorce
When it comes to the division of assets in a divorce case, things can get ugly quickly. Some people attempt to hide information from their spouse in an attempt to protect assets from division. Therefore, it has become a common preventative practice to request account information. This way, new information may surface about assets that were not previously disclosed.
Some see investing in cryptocurrency as a way to hide their financial assets. However, that might not be an effective solution. While no institution or court order can grant access to a person’s portfolio, there are ways of knowing if your spouse has any cryptocurrency. All you need is someone with the necessary skill set.
Cryptocurrency is relatively easy to track down due to the blockchain system. Anyone can see any wallet and all transactions associated with it. The problem is that the name of the person who owns the wallet and the entities who received the transactions are hidden.
Here are the main steps to identify if your spouse has cryptocurrency:
Based on reasonable suspicion, start investigating if the spouse has any cryptocurrency.
Ask yourself if the amount is worth the pursuit. If your spouse chose not to divulge this information in the divorce proceedings, it can be complicated to include it in the asset division. But not impossible. Nevertheless, you should ask yourself if the amount will be worth the hassle.
Contact an expert in the matter to aid you in the investigation of the matter.
Recovery of the Asset
If there is proof that there was cryptocurrency withheld, the spouse can ask for the appropriate share of the asset. At this point, having hired an expert investigator can be very beneficial. If the investigation is conducted by a professional, the evidence will be clear, with no room for interpretation or debate. So, the spouse who withheld the information is likely to settle outside of court.
Withholding information and misleading the court can have serious repercussions. It can lead to perjury or fraud charges. What is more, the expert hired to investigate the cryptocurrency trace can testify in court as a witness.
After determining the value of the cryptocurrency, it can be divided like any other asset. To learn more about how this would happen in your specific case, contact an attorney specializing in divorce laws. They can simplify this otherwise complicated process.
If the spouse is successful in receiving a share of the cryptocurrency and this is a new field for them, they should start learning everything they can about the field. Cryptocurrency has value only for those who know how to use it. Do not hesitate to access available online resources or even sign up for courses on the subject.
When involved in divorce proceedings, it plays out better to be upfront about all assets held and then divide these accordingly. Cryptocurrency can be easily tracked down by experts and brought to the knowledge of the other spouse and the court.
About the author:
While she had a solid education in law, Lynda King wanted more than a job as a lawyer. She knew that people needed information and a better understanding of everyday legal matters, so she began writing articles and guidelines to educate individuals and businesses. Now, Lynda is collaborating with Farzad & Ochoa Family Law Attorneys, being proud that her knowledge and writing talent are helping everyone every day.