Would a spouse attempt to hide cryptocurrency assets?

On Behalf of | Oct 12, 2021 | Family Law | 0 comments

Not every divorce moves forward without difficulty. Anger and resentment could lead some spouses to try to get more from the other during settlement negotiations. Oregon property division is based on the principle of equitable distribution, and some spouses might try to hide assets to avoid giving more to their partners. One method of hiding assets involves using cryptocurrency, which might be challenging to track.

Cryptocurrency and divorce assets

Popular cryptocurrency exchanges may carry well-known crypto assets, such as Bitcoin, and require the account holder to establish an identity to buy or sell anything. Hiding these assets might be difficult, but spouses concerned about any underhanded tactics must understand various cryptocurrencies involve anonymous activity. Someone could move large sums into a crypto wallet and do so anonymously.

A concerned spouse might rely on past conversations about cryptocurrency or any data, including social media or search engine activity, to suggest involvement with an anonymous cryptocurrency account. Bringing these worries to the attention of an attorney may help with shedding light on any attempts to hide assets from the court.

Hiding assets and possible legal consequences

Hiding assets during divorce proceedings is illegal. Anyone who lies to the courts about hidden assets might face legal consequences. However, a spouse with a sense of entitlement or heavy debts may try to cheat the courts and a soon-to-be ex-spouse.

The anonymous nature of cryptocurrency could lead a spouse to take risks. If discovered, the consequences might be severe. Greed may lead a spouse to think the chances are worth the potential punishments.

Perhaps pre-divorce preparation could address a partner’s attempts to hide assets. Before filing for divorce, it might prove advisable to collect as much information and evidence about assets as possible. Doing so may make things harder for a dishonest spouse when negotiations take place.